GameStop Faces Investor Backlash Over $1.3 Billion Bitcoin Pivot

The retailer's stock plummeted 15% after announcing plans to fund Bitcoin purchases via convertible bonds, raising concerns about strategy and shareholder value.

GameStop announced a $1.3 billion convertible bond offering to fund Bitcoin purchases and other corporate purposes.
The company's stock fell over 15% following the announcement, erasing recent gains and signaling investor skepticism.
Analysts question the timing and strategy of the Bitcoin pivot, citing the struggling retail business and volatile cryptocurrency market.
The move mirrors Strategy's Bitcoin playbook but lacks the same premium valuation dynamics, raising doubts about its financial upside.
GameStop also revealed plans to close additional stores this year, highlighting ongoing challenges in its core retail operations.