Gamestop stores will be available on April 4, 2025 at Union Square in New York City.
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Gamestop shares slide on Thursday after video game retailers and Meme shares announced plans for a $1.75 billion convertible note to potentially fund a new Bitcoin purchase strategy.
The company said it intends to use net revenue from its offering for general corporate purposes, including investing in a manner consistent with Gamestop’s investment policy and potential acquisitions.
Part of our investment policy is to add cryptocurrency to our balance sheet. Last month, GameStop bought 4,710 Bitcoin worth more than $500 million.
The shares tanked more than 15% in pre-market trading after the announcement.
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GameStop
GameStop follows in the footsteps of software company MicroStrategy, now known as Strategy. It has bought billions of dollars worth of Bitcoin in recent years to become the largest corporate holder of flagship cryptocurrency. The decision prompted a rapid, volatile, but rising prompt promotion due to the strategy’s stocks.
The strategy issues a variety of forms of securities, including convertible debts to fund Bitcoin purchases.
CEO Ryan Cohen recently said GameStop’s decision to buy Bitcoin is driven by macro concerns as digital coins with fixed supply and diversified nature could serve as protection against certain risks.
The brick and mortar retailer reported a decline in revenue for the first quarter on Tuesday as demand for online gaming rose. That revenue fell 17% year-on-year to $732.4 million.
After these results, shares fell 6% on Wednesday. Wall Street appears to be uncertain that it can mimic the success of microstrategy.
Wedbush analyst Michael Pachter repeated his underperformance ratings on GameStop on Wednesday, saying Meme Stock consistently uses “Greater Fools,” which is willing to pay more than twice the value of its assets for the stock. Analysts at Wedbush believe that the Bitcoin buying strategy makes little sense, as companies already trading at 2.4 times more cash is unlikely to promote even greater premiums by converting more cash into encryption.
