GameStop Bitcoin investment is making headlines as the company unveils plans to raise $1.3 billion through convertible bonds. The video game retailer, a former meme stock sensation, intends to use these funds for general corporate needs, including buying Bitcoin (BTCUSD).
The firm recently revised its corporate investment strategy to incorporate cryptocurrency, following in the footsteps of companies like MicroStrategy. The private bond sale will offer investors the option to convert these securities into GameStop stock, with a maturity date set for 2030.
GameStop Bitcoin Investment: Stock Impact and Market Reaction
Despite this ambitious move, GameStop’s stock took a sharp hit, tumbling around 15% in Thursday’s trading session. However, over the past year, the stock has surged by more than 80%. Investors remain divided on whether this Bitcoin-focused pivot will benefit the company in the long run.
Convertible bonds have become a popular method for firms looking to increase their Bitcoin holdings. MicroStrategy, now known as Strategy (MSTR), has used similar financial tactics to amass a significant Bitcoin reserve. With GameStop’s latest decision, the company is positioning itself within the expanding cryptocurrency landscape.
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Source:www.investopedia.com
