GameStop shares surge 12% on Bitcoin purchase plans

GameStop’s stock rose nearly 12% on March 26 after announcing plans to acquire Bitcoin (CRYPTO:BTC) through a $1.3 billion convertible notes offering.

The company aims to use proceeds from the debt financing for “general corporate purposes,” including Bitcoin purchases, as outlined in its March 26 filing.

GameStop’s strategy follows a trend of publicly traded firms adopting Bitcoin as a treasury reserve.

The company’s cash reserves reached $4.77 billion as of February 1, up from $921.7 million a year prior, providing flexibility for digital asset investments.

The move aligns with GameStop’s March 25 disclosure that it may use corporate cash or future debt to buy Bitcoin and stablecoins.

While the company reported a $131.3 million net income in Q4 2024, net sales fell $511 million year-over-year, prompting aggressive cost-cutting measures like closing 590 U.S. stores in 2024.

GameStop’s announcement mirrors corporate Bitcoin adoption seen elsewhere.

Strategy, which added Bitcoin to its treasury in 2020, saw its stock surge 3,200% by December 2024.

Japanese firm Metaplanet’s stock rose 4,800% after announcing plans to buy 21,000 BTC by 2026, while Semler Scientific also saw gains post-Bitcoin strategy reveal.

CoinGecko data shows 32 publicly traded companies now hold Bitcoin on their balance sheets.

GameStop’s decision reflects growing institutional interest in crypto as a hedge against inflation and currency devaluation.

The company’s convertible notes offering allows investors to later convert debt into equity, a structure common in corporate financing.

GameStop’s stock closed at $28.36 on the NYSE, up 11.65% for the day, driven by optimism about its crypto pivot.

While Bitcoin adoption offers potential upside, GameStop’s financial health remains tied to its core retail operations.

The company’s ability to balance crypto investments with turnaround efforts will likely shape investor sentiment moving forward.

At the time of reporting, the Bitcoin (BTC) price was $87,632.07.