GameStop's Stock Plummets 23% Following Bitcoin Investment Plan

The retailer's $1.3 billion convertible bond offering to fund Bitcoin purchases sparks investor skepticism as store closures continue.

GameStop announced plans to issue $1.3 billion in convertible bonds to fund Bitcoin purchases, marking a major shift in strategy.
The company's stock fell over 23% on Thursday, erasing earlier gains and hitting its lowest price since October 2024.
Investors and analysts have raised concerns about the timing, viability, and effectiveness of GameStop's Bitcoin pivot, especially given the cryptocurrency's recent volatility.
GameStop also confirmed the closure of over 1,000 retail stores globally, reducing its footprint by more than 30% as it struggles with declining sales.
The move mirrors Strategy's Bitcoin-focused playbook but faces criticism due to differences in valuation and market conditions, leading to doubts about its long-term impact.