GameStop’s Bitcoin Strategy Draws Skepticism Amid $1.75B Debt Offering
GameStop‘s (NYSE:GME) stock took a sharp hit on Thursday, falling 22% to $22.12 by midday Eastern Time, following the announcement that it plans to issue $1.75 billion in convertible senior notes.
What Happened: The notes, which won’t carry regular interest, are aimed at “general corporate purposes,” according to the company’s blog post.
While GameStop didn’t explicitly mention Bitcoin (CRYPTO: BTC) in the announcement, the phrasing referenced potential investments “consistent with its investment policy” language similar to what the company used earlier this year when it updated its policy to allow for crypto assets.
The company previously disclosed in late May that it had acquired 4,710 Bitcoin, though the announcement offered little detail.
It gave no information on average purchase price or how much cash was deployed, deviating from the transparency typically seen in corporate Bitcoin disclosures.
That minimal communication has left analysts and investors guessing about the scope and intent of …
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