N
NewsMaker
Administrator
- USD
- $40,998,899
- Gold
- G4,000
GameStop shares jumped nearly 12% on March 26 after the company announced plans to purchase Bitcoin (BTC).
The company plans to finance the purchase through debt financing. After markets closed on March 26, GameStop announced a $1.3 billion convertible notes offering.
The convertible senior notes — debt that can later be converted into equity — will be used for general corporate purposes, including acquiring Bitcoin, according to a company statement.
“GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy,” it said.
The company revealed on March 25 plans to use a portion of its corporate cash or future debt to buy digital assets, including Bitcoin and US-dollar-pegged stablecoins. GameStop’s cash reserves stood at $4.77 billion on Feb. 1 compared to $921.7 million one year earlier.
According to Google Finance, GameStop shares closed at $28.36 on the NYSE, marking an 11.65% gain for the day.
The company reported a net income of $131.3 million for Q4 2024 compared to $63.1 million for the prior year Q4. Although net sales had fallen $511 million year-over-year, the company has been aggressively cutting expenses, including closing 590 stores throughout the United States in 2024.
GameStop was once at the center of the 2021 meme stock craze when retail traders orchestrated a “short squeeze” that sent the price of the stock soaring. Some hedge funds closed down as a result of losses sustained during the short squeeze, giving the GameStop meme stock rise a “David vs. Goliath” narrative.
Related: GameStop buying Bitcoin would ‘bake the noodles’ of TradFi: Swan exec
More companies adopt Bitcoin reserve strategy
GameStop is following the lead of Strategy, which first added Bitcoin to its treasury in August 2020. As of December 2024, Strategy’s stock had gained 3200% since adopting its crypto strategy.
Metaplanet, a Japanese company with plans to buy 21,000 BTC by 2026, saw its stock price rise 4800% since announcing the move. In promotional materials, Metaplanet said it had attracted a significant number of new investors, with its market capitalization rising by 6300%.
Semler Scientific also saw a spike in its share price after announcing plans to purchase Bitcoin.
According to CoinGecko, 32 publicly traded companies hold BTC on their balance sheets.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
Actual Crypto Price of Cryptocurrency on the market now
Bitcoin/USD
Ethereum ETH
Litecoin LTC
Solana SOL
Tron TRX
Contacts for ads and profitable Investments
Click Here
Read more
