{"id":19453,"date":"2025-03-28T01:01:32","date_gmt":"2025-03-28T01:01:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19453"},"modified":"2025-03-28T01:01:32","modified_gmt":"2025-03-28T01:01:32","slug":"gamestop-wipes-out-3b-in-market-cap-as-stockholders-question-bitcoin-plan","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19453","title":{"rendered":"GameStop wipes out $3B in market cap as stockholders question Bitcoin plan"},"content":{"rendered":"
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\"GameStop<\/p>\n

GameStop shed nearly $3 billion in market capitalization on March 27 as investors second-guessed the videogame retailer\u2019s plans to stockpile Bitcoin (BTC<\/a>), according to data from Google Finance.\u00a0<\/p>\n

On March 26, GameStop tipped plans<\/a> to use proceeds from a $1.3 billion convertible debt offering to buy Bitcoin \u2014 an increasingly popular strategy for public companies looking to boost share performance.\u00a0<\/p>\n

GameStop\u2019s announcement came a day after it proposed building a stockpile of cryptocurrencies<\/a>, including Bitcoin and US dollar-pegged stablecoins.\u00a0<\/p>\n

Investors initially celebrated the news, sending shares up 12% on March 26. Shareholders\u2019 sentiment reversed on March 27, pushing GameStop\u2019s stock, GME, down by nearly 24%, according<\/a> to Google Finance.\u00a0<\/p>\n

\"GameStop
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GameStop\u2019s stock reversed gains on March 27. Source: <\/em>Google Finance<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related:\u00a0<\/strong><\/em>GameStop buying Bitcoin would \u2018bake the noodles\u2019 of TradFi: Swan exec<\/strong><\/em><\/a><\/p>\n

Chilly reception<\/h2>\n

Analysts say the chilly reception reflects fears GameStop may be seeking to distract investors from deeper problems with its business model.\u00a0<\/p>\n

\u201cInvestors are not necessarily optimistic on the underlying business,\u201d Bret Kenwell, US investment analyst at eToro, told<\/a> Reuters on March 27.\u00a0<\/p>\n

\u201cThere are question marks with GameStop’s model. If bitcoin is going to be the pivot, where does that leave everything else?\u201d<\/p>\n

The sell-off also highlights investors\u2019 more bearish outlook on Bitcoin as macroeconomic instability, including ongoing trade wars, weighs on the cryptocurrency\u2019s spot price.\u00a0<\/p>\n

Bitcoin is down around 7% year-to-date, hovering around $87,000 as of March 27, according to Google Finance.<\/p>\n

Bitcoin\u2019s \u201cprice briefly jumped to $89,000 but has now reversed its trend,\u201d Agne Linge, decentralized finance (DeFi) protocol WeFi\u2019s head of growth, told Cointelegraph. <\/p>\n

Linge added that trade wars triggered by US President Donald Trump\u2019s tariffs remain a concern for traders.<\/p>\n

\"GameStop
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Public companies are among the largest Bitcoin holders. Source: <\/em>BitcoinTreasuries.NET<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Corporate Bitcoin treasuries<\/h2>\n

GameStop is a relative latecomer among public companies creating Bitcoin treasuries.<\/p>\n

In 2024, rising Bitcoin prices sent shares of Strategy soaring more than 350%, according to data from FinanceCharts.\u00a0<\/p>\n

Founded by Michael Saylor, Strategy has spent more than $30 billion buying BTC since pioneering corporate Bitcoin accumulation in 2020, according to data from BitcoinTreasuries.NET.NET.\u00a0<\/p>\n

Strategy\u2019s success prompted dozens of other companies to build Bitcoin treasuries of their own. Public companies collectively hold nearly $58 billion of Bitcoin as of March 27, the data<\/a> shows.\u00a0<\/p>\n

Magazine:\u00a0<\/strong><\/em>SEC\u2019s U-turn on crypto leaves key questions unanswered<\/strong><\/em><\/a><\/p>\n