{"id":54796,"date":"2025-03-27T06:30:04","date_gmt":"2025-03-27T06:30:04","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=54796"},"modified":"2025-03-27T06:30:04","modified_gmt":"2025-03-27T06:30:04","slug":"gamestop-targets-crypto-1b-in-convertible-senior-notes-for-bitcoin-purchase","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=54796","title":{"rendered":"GameStop Targets Crypto: $1B In Convertible Senior Notes For Bitcoin Purchase"},"content":{"rendered":"

GameStop, the video game retail company, experienced a significant downturn in its stock (GME) price, sliding more than 8% in after-hours trading on Wednesday, following the announcement<\/a> that the company plans to raise $1.3 billion to invest in Bitcoin (BTC) through the issuance of convertible senior notes.\u00a0<\/p>\n

This move comes just a day after GameStop shares surged nearly 12% when the company revealed <\/a>that its board had unanimously approved an update to its investment policy, designating Bitcoin as a treasury reserve asset.<\/p>\n

GameStop Planned Bitcoin Investment<\/h2>\n

The planned investment<\/a> in Bitcoin follows a recent trend of GameStop exploring cryptocurrency ventures. Reports surfaced about a month ago indicating that the company was considering investments in the digital currency space.\u00a0<\/p>\n

Speculation intensified on February 8 when GameStop CEO Ryan Cohen shared a social media post featuring a photo with Michael Saylor<\/a>, the CEO of Strategy (MSTR), a company renowned for its substantial Bitcoin holdings, which exceed 447,000 BTC tokens.<\/p>\n

Saylor\u2019s strategy of heavily investing in Bitcoin has proven fruitful, with MicroStrategy\u2019s stock appreciating over 84% in the past year, largely in tandem with rising Bitcoin prices. However, Wall Street analysts remain cautious about GameStop\u2019s ability to replicate this success.\u00a0<\/p>\n

Skepticism From Wall Street Experts<\/h2>\n

\u201cThe company\u2019s strategy, which has changed about six times in three years, is they\u2019re going to buy cryptocurrency and be just like MicroStrategy,\u201d noted Wedbush analyst Michael Pachter.\u00a0<\/p>\n

Pachter further expressed skepticism about the effectiveness of this approach, particularly given Strategy trades at roughly two times its Bitcoin holdings<\/a>. Pachter added, \u201cIf GameStop were to buy all Bitcoin with their $4.6 billion in cash and trade at two times their Bitcoin holdings, the stock would drop five bucks.\u201d<\/p>\n

Additionally, GameStop reported its fourth-quarter earnings results after the market closed on Tuesday, revealing $1.28 billion in net sales for the quarter\u2014a 28% decline compared to the same period last year.\u00a0<\/p>\n

For the full fiscal year, the company posted an adjusted EBITDA of $36.1 million, a decrease from $64.7 million reported the previous year.<\/p>\n

Experts\u2019 concerns may also be stemming from Bitcoin\u2019s volatility<\/a>, which saw a more than 25% retracement from its record high of $109,000 reached during the broader market rally in January.\u00a0<\/p>\n

This developed into a drop toward the $76,000 mark on March 11th, a level not seen since November 2024. However, the market\u2019s leading crypto has recovered to around $87,477 at the time of writing, reflecting a 4.5% increase in the fourteen-day time frame.<\/p>\n

Featured image from DALL-E, chart from TradingView.com <\/p>","protected":false},"excerpt":{"rendered":"

GameStop, the video game retail company, experienced a significant downturn in its stock (GME) price, sliding more than 8% in after-hours trading on Wednesday, following the announcement that the company plans to raise $1.3 billion to invest in Bitcoin (BTC) through the issuance of convertible senior notes.\u00a0 This move comes just a day after GameStop […]<\/p>\n","protected":false},"author":0,"featured_media":54797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-54796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/54796"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54796"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/54796\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/54797"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}