GameStop’s $512 Million Bitcoin Purchase Sends Shares Below $30
Investors deem the move too modest to sustain the rally, questioning whether crypto reserves will address the retailer’s underlying sales decline
Overview
- GameStop announced it acquired 4,710 Bitcoin for approximately $512 million on May 27.
- Shares fell more than 10% on May 28 and closed under $30 on May 29 following the acquisition news.
- The purchase accounted for less than half of the $1.3 billion raised via convertible notes to fund its crypto treasury strategy.
- Following firms like Strategy and Trump Media, GameStop is expanding its balance sheet with Bitcoin holdings.
- Investors worry the crypto investment will not compensate for the retailer’s persistent sales decline and ongoing store closures.