Shares of GamestopThe video game retailer who recently swung Bitcoin investmentOn Thursday after the company after the company announced plans to collect 1.75 billion US dollars Foreign financing In the past few months it has been the second of investors.
The Gamestop shares have fallen by 20% since the announcement and have dropped between $ 28.50 to 23 US dollars.
While the company does not name Bitcoin In particular, the reason for the capital increase was said that the money for “general corporate purposes, including investments in a way that matches the investment policy of Gamestop and potential acquisitions”, would be used in A opinion on Wednesday.
Gamestop in March announced In March that it would be a business strategy that invests in “Bitcoin as a financial reserve value”.
Gamestop did not immediately answer a request for a comment from Assets.
“Part of our cash or future debts and equity expenditure can be Invested in BitcoinSaid the company in a securities and Exchange Commission (sec) submission. “We have not set a maximum amount of Bitcoin that we can accumulate and can sell any Bitcoin that we can buy.”
This financing round of 1.75 billion US dollars takes place after Gamestop made his first Bitcoin purchase last month. The company obtained 4,710 bitcoins – fueled over 500 million US dollars at its current price – with the funds recorded in a similar debt financing round in April, in which Gamestop increased $ 1.5 billion.
Gamestop’s speed to Bitcoin follows in the footsteps of strategyAn experienced software company that started buying Bitcoin and financial assets in 2020. Since then, the company has skyrocketed the share price.
While Bitcoin purchases were a blessing for other companies, Gamestop has problems that other companies do not have. Gamestop has had difficulties for years to keep up with the relocation of the customer from physical to digital video games. For this reason, the company’s turnover decreased by 28% between 2023 and 2024 and fell from $ 5.3 billion to 3.8 billion US dollars. Gamestop also closed a quarter of its locations last year and plans to further close the business this year.
Gamestop investors have also repeated Impressive skepticism About the company’s cryptoplades. After the first announcement of the strategy shift by Gamestop, the company’s shares fell by 23%. After the company announced its first Bitcoin investment, the company’s shares fell by 10%.
When Bitcoin reached new heights and adopted by which is passed as Ministry of Finance US governmentBitcoin investments are pursuing a growing number of non-crypto companies to increase their share price. Last week the K-Pop Media Company K-Wave Media share price rose over 130%after announcing plans to acquire Bitcoin. More than 60 non-crypto companies According to a recent report by the International Bank, a “Bitcoin Treasury strategy” pursue Standard charter.
This story was originally on Fortune.com
