GameStop’s stock experienced a stock decline of over 25% intraday on Thursday. This slump f ollowed the announcement of a strategic pivot involving the issuance of $1.3 billion in convertible bonds to finance the acquisition of Bitcoin ( BTC ). The video game retailer plans to offer these 0% convertible senior notes, maturing in 2030, in a private sale. The proceeds are intended for general corporate purposes, including the purchase of Bitcoin, as part of an updated investment policy approved by the company’s board earlier this week. GameStop shares spiked over 14% in yesterday’s aftermarket hours but opened the day at $25.78 per share and slumped to a low of $21.16 per share on the day. You might also like: France’s Bpifrance to invest $27m in emerging crypto tokens: report Bitcoin as a treasury reserve This move aligns GameStop with other corporations like MicroStrategy , which have i ntegrated Bitcoin into their treasury reserves. However, the timing and execution have raised concerns among investors and analysts. Bret Kenwell, a U.S. investment analyst at eToro, questioned the company’s direction, stating, “There are question marks with GameStop’s model. If bitcoin is going to be the pivot, where does that leave everything else?” The announcement also included plans to close a significant number of additional stores this year, signaling ongoing challenges in GameStop’s core retail operations. This has further fueled investor skepticism about the company’s long-term viability and strategic focus. You might also like: Senate Banking Committee delays vote on SEC chair nominee
