GameStop Slides Another 6% as Investors Sell the Bitcoin Buy News
GameStop (GME) shares dropped nearly another 6% on Thursday as investors continued to sell the news of the company's disclosure of its initial bitcoin acquisitons.
The company on Wednesday morning said it had acquired 4,710 bitcoin — a long-awaited move tied to its crypto treasury strategy revealed in March. At that time, the company initiated a $1.3 billion capital raise to help fund BTC purchases.
The stock plunged shortly after alongside a steep drop in broader markets on the Trump Liberation Day tariff announcements. Shares, though, bottomed along with markets mid-month and rose more than 60% in the weeks leading up to the Wednesday announcement.
The decline since — now nearing 20% — could be little more than investors selling the news after the big run higher or could be investor exhaustion with corporate bitcoin treasury strategies, which seemingly have been coming at the rate of one or more per day for several weeks.
In addition, GameStop's acquisition of "just" roughly $500 million of bitcoin (the dates and prices of the buys weren't disclosed) could be a disappointment given the company's $1.3 billion capital raise, not to mention several billion dollars in free cash that was already on the balance sheet. With a market cap of $14 billion, the company’s bitcoin purchase was relatively modest.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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