GameStop Faces Investor Backlash Over $1.3 Billion Bitcoin Strategy

The gaming retailer's stock has plunged over 23% following its plan to finance Bitcoin purchases through convertible bonds, raising doubts about its business model and timing.

GameStop announced a $1.3 billion convertible bond offering to fund Bitcoin purchases, with bonds maturing in 2030 and a conversion price set at $29.85 per share.
The company's stock initially surged 11.7% after the announcement but has since plummeted over 23%, erasing earlier gains as skepticism mounts.
Analysts have criticized the move as high-risk, questioning its timing and ability to address GameStop's core challenges, including declining retail sales and store closures.
GameStop plans to close over 1,000 stores globally in 2025, further reducing its physical retail footprint as it struggles to adapt to digital gaming trends.
Despite the Bitcoin pivot, investor confidence remains low, with concerns about the company's valuation and the long-term viability of its strategy.

Cleveland Plain Dealer