GameStop stock plunges over 25% intraday after announcing $1.3b Bitcoin bet

Gamesop’s shares experienced a drop in action by more than 25% intrajournial Thursday.

This FF crisisembarrassed the ad of a strategic pivot involving the emission of $ 1.3 billion in convertible bonds to finance the acquisition of Bitcoin (BTC).

The video game retailer plans to offer these senior tickets convertible at 0%, maturing in 2030, in a private sale.

The product is intended for general business purposes, including the purchase of Bitcoin, as part of an updated investment policy approved by the company’s board of directors earlier this week.

Gamesop shares increased by more than 14% during yesterday, but opened the day at $ 25.78 per share and dropped to a hollow of $ 21.16 per share during the day.

Bitcoin as a cash reserve

This decision aligns GameStop with other companies such as Microstrategywho have IBitcoin in their cash reserves. However, the moment and execution have raised concerns among investors and analysts.

Bret Kenwell, an investment analyst in the United States at Etoro, questioned The management of the company, declaring: “There are question points with the Gamesop model. If Bitcoin will be the pivot, where does that leave everything else? ”

The announcement also included plans to close a large number of additional stores this year, reporting continuous challenges in the main retail operations of GameStop. This has further fueled investor skepticism about long -term viability and the long -term strategic objective of the company.