Will GameStop Buy More Bitcoin? Shares Plunge Amid 'Black Box' Criticism Over Strategy
GameStop shares fell 22% to $22.12 after announcing a $1.75 billion offering of convertible senior notes. The funds will be used for general corporate purposes, including investments aligned with its updated investment policy. GameStop previously indicated plans to leverage Bitcoin and cryptocurrencies but did not mention Bitcoin in the recent announcement. The company purchased 4,710 Bitcoin last month and has held other cryptocurrencies for an NFT marketplace. CEO Ryan Cohen emphasized that GameStop would not disclose future Bitcoin purchases. Critics have noted a lack of transparency regarding the company's crypto strategy. GameStop raised $1.5 billion through a similar bond offering in April and held $6.3 billion in cash as of May. The company gained notoriety as a meme stock during a significant short squeeze in 2021.
