GameStop stock drops over 15% after announcing plans to buy bitcoin

From Yahoo Finance: 2025-03-27 12:34:00

Shares of GameStop plummeted over 15% after announcing plans to finance its bitcoin pivot, raising concerns about timing and strategy. The company offered $1.3 billion in 0% 2030 convertible bonds to acquire the cryptocurrency, causing its biggest one-day fall since last June.

Retail traders were initially excited by GameStop’s move to buy bitcoin as a treasury reserve asset, but the company also revealed plans to close a significant number of stores this year. This signals continued struggles for its retail business, casting doubt on the overall outlook.

Investors are skeptical of GameStop’s underlying business model, with questions about the impact of the bitcoin pivot. The decision to buy bitcoin comes as the cryptocurrency’s price has surged since November, but uncertainty in economic conditions remains a concern.

GameStop’s debt offering to fund bitcoin purchases mirrors the strategy of Strategy, a major holder of bitcoin. However, the move has not significantly boosted market confidence in the crypto industry, contributing to GameStop’s recent stock declines.

GameStop shares have fallen over 23% this year, with the company facing challenges in turning around its struggling retail business. The decision to buy bitcoin has raised questions about the company’s overall strategy and future prospects in the market.

Read more: GameStop shares tumble as investors question bitcoin pivot