GameStop Stock Tanks 22% After $1.3B Bond Plan for Bitcoin Buys
The company’s plan to raise $1.3 billion—aimed in part at purchasing Bitcoin—sent GameStop stock tumbling by over 22%.
Once at the center of the meme stock frenzy, GameStop is reinventing itself again—this time with a crypto twist. The company has revised its investment policy to incorporate Bitcoin into its treasury holdings, announcing a bold plan to raise $1.3 billion via convertible bonds, partly to acquire BTC.
But the market’s verdict was swift. Shares plunged 22% within 24 hours, as investors wrestled with concerns over GameStop’s long-term viability and whether diving into crypto was a sound financial move—or a speculative gamble.
A Bitcoin Strategy Worth $1.3B?
GameStop’s latest headline-grabber? A $1.3B zero-coupon convertible bond issue aimed at building a position in Bitcoin. The deal also invites institutional investors to pick up an extra $200M in bonds within 13 days of launch.
Sound familiar? It should—Strategy (formerly MicroStrategy) played the same card, turning itself into a BTC-heavyweight by loading up on crypto.
GameStop could see upside in market cap if things go well—but critics warn that anchoring corporate growth to Bitcoin isn’t exactly a risk-free roadmap.
Check this out: CoinShares Criticizes MicroStrategy’s Bitcoin Strategy
GME Hits 2025 Low as Market Reacts to Bond News
GameStop’s move to issue convertible bonds sent its stock tumbling to $21.50, its lowest level this year, according to CNBC. By Thursday’s close, the price had dropped over 22%, ending at $22.09.
The decline likely stems from uncertainty over the company's trajectory, given ongoing 10–20% annual revenue declines. However, this slide coincided with broader market pressures tied to Donald Trump’s tariff war, suggesting macro forces also played a part.
Converting cash into crypto reserves might sound bold, but it could be a distraction from the real issue: GameStop’s core business is still struggling. And until that changes, any long-term success story remains far from guaranteed.
Despite optimism from some in the Bitcoin camp, investors aren’t buying the hype just yet. They know that soaring BTC prices won’t fix GameStop’s internal weaknesses—those still need serious work.
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