GameStop pulled off a $1.5 billion convertible debt offering, and they’re jumping into Bitcoin.
The video game retailer is joining the ranks of companies like MicroStrategy, following in the footsteps of Michael Saylor’s playbook. But let’s get real here, this is about survival too.
Systemic flaws in the business model?
GameStop initially wanted to raise at least $1.3 billion but ended up with an extra $200 million. That’s a lot of cash, and some of it is earmarked for buying Bitcoin.
The company’s cash reserves are $4.77 billion as of February 1, a nice jump from $921.7 million last year.
But they want to using that cash to maybe, just maybe, turn their business around.
When GameStop announced its Bitcoin plans, the stock jumped nearly 12% to $28.36. But, like a fleeting dream, it dropped almost 24% the next day.
Analysts say shareholders are worried about deeper issues with GameStop’s business model. It’s like watching a high-stakes poker game, exciting, but also terrifying in the same time.
Bitcoin only?
GameStop isn’t the first to create a Bitcoin treasury, but it’s definitely making a statement.
They’ve dabbled in crypto before, with a crypto wallet that got shut down due to regulatory issues.
Now, they’re betting big on Bitcoin. The question here is that you may have heard before, it’s a bold move, but will it pay off?
All-in
Remember when GameStop was the memestock king? It jumped over 1,000% in a month back in 2021, leaving hedge funds in the dust.
But that was then, and this is now. The question is, can GameStop use Bitcoin to reclaim its glory days?
Many say GameStop’s move into Bitcoin is a gamble, plain and simple. It’s a $1.5 billion bet on a volatile market.
But hey, in the world of high finance, sometimes you gotta roll the dice. Will it work? This is the real question, right?
Have you read it yet? Tokenized gold is shaking up finance?
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
