The Daily: GameStop sinks 25% on $1.75 billion raise tied to bitcoin play, Bessent sees US stablecoin market topping $2 trillion, and more

The following article is adapted from The Block’s newsletter,  The Daily , which comes out on weekday afternoons.

Happy Thursday! With Coinbase listing Fartcoin today, can it provide the hot air needed to lift a crypto market weighed down once again by Trump-linked macro fears? I'll let that one linger with you as we move on to more serious matters.

In today's newsletter, GameStop files for a $1.75 billion offering to potentially add to its BTC stack, Ethereum ETFs eclipse Bitcoin ETFs for daily inflows, Treasury Secretary Scott Bessent says the U.S. stablecoin market could exceed $2 trillion, and more.

Plus, ICYMI, the U.S. Senate voted to move forward with the GENIUS Act as stablecoin legislation picks up speed.

Let's get started.

GameStop files for $1.75 billion offering amid BTC treasury play

GameStop filed to offer $1.75 billion in zero-coupon convertible notes late Wednesday, with an option to increase that by $250 million, potentially to fund further bitcoin purchases.

• The struggling video game retailer plans to use proceeds for general corporate purposes, including acquisitions aligned with its investment policy.
• In March, GameStop updated that policy to include bitcoin as a treasury reserve asset, then raised $1.5 billion through convertible notes in April. On May 28, GameStop disclosed it held 4,710 BTC following its first set of bitcoin purchases.
• The announcement follows a steep 17% drop in Q1 revenue, falling to $732.4 million from $881.8 million a year earlier.
• The popular meme stock plunged nearly 25% on Thursday, according to TradingView, with investors seemingly reacting negatively to the news.
• Keith "Roaring Kitty" Gill and the WallStreetBets subreddit famously helped ignite the meme stock frenzy that sent GameStop's trading volume soaring in 2021.

Treasury Secretary Scott Bessent says US stablecoin market could surpass $2 trillion

Treasury Secretary Scott Bessent told a congressional hearing that he expects the U.S. dollar stablecoin market to exceed $2 trillion by 2028 — provided there is legislative support.

• The Senate earlier advanced the GENIUS Act on Wednesday, a bill that mandates full backing of stablecoins with U.S. dollars or similarly liquid assets and annual audits for issuers with market caps over $50 billion.
• Bessent framed stablecoins as a new mechanism to reinforce the U.S. dollar's global reserve status, with support from President Trump, who previously stated that he wants to sign the bill into law before August.
• U.S. dollar-linked stablecoins already dominate more than 96% ($247 billion) of the global market, with major institutions like Bank of America and Circle racing to expand their presence.

Ethereum ETFs outshine Bitcoin for a day

U.S. spot Ethereum ETFs pulled in $240.3 million on Wednesday, outpacing Bitcoin ETFs' $164.6 million and marking 18 straight days of net inflows totaling $1.3 billion.

• BlackRock's ETHA led the way with $163.6 million, followed by $37.28 million into Fidelity's FETH, as investors rotated into exposure to the second-largest cryptocurrency.
• Analysts attribute the inflows to positive regulatory discussions around DeFi and stablecoins, alongside a spillover effect from bitcoin's rally.
• However, cumulative flows since inception tell a different story: Bitcoin ETFs have hauled in $45.5 billion, far outweighing the Ethereum ETFs' $3.8 billion in net inflows — albeit with a six-month head start.

Plasma doubles deposit cap to $1 billion

Plasma, an EVM-compatible Bitcoin sidechain designed to eliminate transaction fees for Tether's USDT, doubled its stablecoin deposit cap to $1 billion on Thursday.

• The vault filled in just 30 minutes amid overwhelming demand from users seeking access to its XPL token sale after its initial $500 million cap was reached in under an hour earlier this week.
• Depositors of USDT, USDC, USDS, and Dai earn the right to participate in the upcoming public sale of XPL, which remains capped at $50 million at a $500 million fully diluted valuation.
• Plasma emphasized that the deposits are not part of the token sale itself and that all funds remain user-owned, to be bridged to the Plasma mainnet beta.

USDC goes live on XRP Ledger

USDC has gone live natively on the XRP Ledger just a week after Circle's blockbuster IPO, giving developers, institutions, and users direct access to the world's second-largest stablecoin with no bridging required.

• Circle's stablecoin creation platform, Circle Mint, and its developer-focused APIs now fully support USDC on the XRPL, enabling real-time payments, DeFi applications, and low-cost on/off-ramps within the network.
• The XRPL's decentralized infrastructure — supported by cross-border payment company Ripple and other contributors — has processed over 3.3 billion transactions since its launch in 2012.

In the next 24 hours

• It's quiet on the economic calendar front.
• 1inch, Immutable, and Moca Network are set for token unlocks.

Never miss a beat with The Block's  daily digest  of the most influential events happening across the digital asset ecosystem.