GameStop Stock Price Continues Sinking After $512 Million Bitcoin Buy
GameStop's stock price declined for the second consecutive day, closing down over 5% at $29.57 per share after announcing a Bitcoin purchase exceeding $500 million. The stock peaked at nearly $36 at Wednesday's open, its highest in nearly a year. GameStop's stock had previously risen in March upon revealing plans to add Bitcoin as a treasury asset but fell after announcing a $1.5 billion raise for Bitcoin purchases. Despite broader market gains, GameStop's price drop coincided with Bitcoin's struggle to maintain recent highs, currently valued at $105,957 after peaking at $111,814. GameStop acquired 4,710 Bitcoin, valued at $512 million initially. CEO Ryan Cohen indicated future Bitcoin purchases would not be predetermined. The company's strategy mirrors that of Strategy, a major corporate Bitcoin holder, which has positively impacted its stock and others adopting similar crypto strategies. Investor sentiment towards GameStop's crypto initiative appears lukewarm.
