From Yahoo Finance: 2025-06-12 09:54:00

GameStop’s stock dropped 19% after announcing a $1.75 billion convertible bond sale. This follows a similar $1.3 billion bond sale in March. The company plans to use the funds for investments and acquisitions, including a recent $500 million bitcoin purchase.

GameStop, known for its meme stock status, is following Michael Saylor’s lead by adding bitcoin to its balance sheet. This strategy involves a mix of debt and equity but comes with risks due to bitcoin’s volatility. The company’s revenue has been declining as gamers shift to digital purchases.

Investors are cautious about GameStop’s bitcoin bet, as a sharp drop in price could lead to bankruptcy. The company’s move to invest in bitcoin in May sent shares down 10%. GameStop reported a 6% revenue drop in the first quarter, causing a 5% stock decline the next day.

Read more: Gamestop stock plummets as company announces $1.75 billion debt offering amid bitcoin push