GameStop Targets Crypto: $1B In Convertible Senior Notes For Bitcoin Purchase
GameStop's stock (GME) fell over 8% in after-hours trading after announcing plans to raise $1.3 billion for Bitcoin investments through convertible senior notes. This announcement followed a nearly 12% surge in shares when GameStop's board approved Bitcoin as a treasury reserve asset. The company has been exploring cryptocurrency investments, with CEO Ryan Cohen recently posting with Michael Saylor, CEO of MicroStrategy, known for its significant Bitcoin holdings. Analysts express skepticism about GameStop's strategy, noting its frequent changes and questioning its ability to emulate MicroStrategy's success. GameStop reported fourth-quarter earnings of $1.28 billion, a 28% decline year-over-year, and an adjusted EBITDA of $36.1 million, down from $64.7 million the previous year. Concerns also arise from Bitcoin's volatility, which saw a significant drop from its record high but has recently recovered to around $87,477.
