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GameStop invested nearly $3 billion in market cap on March 27 as investors speculated for the second time that video game retailers could reserve Bitcoin (BTC).
On March 26, GameStop proposed plans to use the proceeds of $1.3 billion of convertible debt to buy Bitcoin, a growing popular strategy for listed companies looking to improve stake performance.
GameStop’s announcement comes the day after the proposal to build a large pile of cryptocurrencies, including Bitcoin and USD fixed Stablecoins.
Investors initially celebrated the news, pushing stocks up 12% on March 26. Shareholder sentiment turned upside down on March 27, pushing GameStop’s stock (GME) to nearly 24%.
GameStop’s stock reversed earnings on March 27. Source: Google Finance
Related: GameStop Buy Bitcoin Will “Bak Noodles”: Swan Exec
Cold reception
Analysts say the cold reception reflects concerns that Gamestop may be seeking to diversify investors’ deeper issues in its business model.
“Investors are not necessarily optimistic about the basic business,” Bret Kenwell, an U.S. investment analyst at Etoro, told Reuters on March 27.
“The GameStop model has a question mark. If Bitcoin will be a hub, where will it stay?”
The sell-off also highlights investors’ bearish outlook for Bitcoin, as macroeconomic instability, including the ongoing trade war, attaches importance to the spot price of cryptocurrencies.
Bitcoin fell by about 7% as of March 27, and as of March 27, it hovered around $87,000, according to Google Finance.
Bitcoin’s “price briefly jumped to $89,000, but has now reversed the trend.”
Linge added that the trade war triggered by tariffs from U.S. President Donald Trump remains a concern for businessmen.
Public companies are one of the largest Bitcoin holders. source: BitcoinReasuries.net
Company Bitcoin Treasury
GameStop is a relative postscript to the listed company that created the Bitcoin treasury.
Stocks with rising Bitcoin prices soared more than 350% in 2024, according to FinanceCharts.
According to BitCoinTreasuries.net.net, the strategy was founded by Michael Saylor, and has spent more than $30 billion in BTC since the startup Bitcoin accumulation in 2020.
The success of the strategy has prompted dozens of other companies to build their own Bitcoin treasury. Data shows that as of March 27, listed companies collectively claimed nearly $58 billion in Bitcoin.
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