GameStop Shares Soar 12% After Announcing Bitcoin Purchase Plans

GameStop Shares Surge After Announcing Bitcoin Purchase Plans with $1.3 Billion Debt Offering

  • GameStop shares surged nearly 12% after announcing plans to purchase Bitcoin using proceeds from a $1.3 billion convertible notes offering.
  • The gaming retailer is joining a growing trend of public companies adding Bitcoin to their treasuries, following companies like MicroStrategy.
  • Despite falling net sales, GameStop reported a Q4 2024 net income of $131.3 million, up from $63.1 million in the prior year’s quarter.

GameStop stock jumped 11.65% on March 26 following the company’s announcement of plans to purchase Bitcoin using proceeds from a newly announced debt offering. The gaming retailer closed at $28.36 on the NYSE after revealing it would finance Bitcoin acquisitions through a $1.3 billion convertible notes offering announced after market close.

- Advertisement -

The company’s statement indicated that proceeds from the offering would serve multiple purposes. “GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy,” the retailer explained.

Just a day earlier, on March 25, GameStop had disclosed plans to allocate a portion of its corporate cash or future debt toward digital assets, specifically Bitcoin and US-dollar-pegged stablecoins. The company currently maintains substantial cash reserves of $4.77 billion as of February 1, a significant increase from $921.7 million reported one year prior.

The convertible senior notes—debt instruments that can later be converted into equity—represent a strategic move as the company navigates its financial future. Despite experiencing a $511 million year-over-year decline in net sales, GameStop has aggressively reduced expenses, including shuttering 590 US stores throughout 2024. These cost-cutting measures have contributed to a net income of $131.3 million for Q4 2024, compared to $63.1 million for the same period in the previous year, as reported by the company.

GameStop previously captured widespread attention during the 2021 meme stock phenomenon when retail traders orchestrated a “short squeeze” that dramatically increased the stock’s value. The event, which forced some hedge funds to close due to substantial losses, took on a “David vs. Goliath” narrative in financial markets.

The retailer now joins a growing list of public companies adopting Bitcoin as a treasury reserve strategy. MicroStrategy pioneered this approach in August 2020, with its stock reportedly gaining 3200% since implementing its crypto strategy as of December 2024.

Other companies have seen similar positive market responses. Metaplanet, a Japanese firm aiming to acquire 21,000 BTC by 2026, has experienced a 4800% increase in its stock price since announcing its Bitcoin plans. The company claims to have attracted numerous new investors, resulting in a 6300% rise in market capitalization. Similarly, Semler Scientific witnessed a share price spike after revealing its intention to purchase Bitcoin.

- Advertisement -

According to CoinGecko data, 32 publicly traded companies currently maintain Bitcoin holdings on their balance sheets, highlighting a growing corporate interest in cryptocurrency as a treasury asset.

GameStop’s Bitcoin plans were solidified through its announcement of the $1.3 billion convertible notes offering, positioning the company to join this expanding trend of corporate Bitcoin adoption.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest

AMLC joins hunt for P200M crypto in Anson Que kidnap-slay case

Police are tracking approximately P200 million in cryptocurrency transfers related to businessman Anson Que's kidnapping and murder.Two suspects have been arrested and one surrendered,...

BIS Crypto Containment Plan ‘Dangerous,’ Warns CoinFund President

CoinFund president Christopher Perkins criticizes BIS recommendations on crypto as "dangerous" for the financial system.BIS's proposed "containment" approach to isolate crypto from traditional finance...

Schwab Sets April 2026 Target for Bitcoin Trading After 400% Surge

Charles Schwab Corp plans to launch spot Bitcoin trading by April 2026, citing a 400% increase in traffic to its crypto website.CEO Rick Wurster...

Crypto Winter Looms: Investors Find Opportunities Amid Market Uncertainty

Crypto markets face volatility in 2025 despite positive Trump administration actions, with tariff policies adding pressure to digital asset prices.Investors should focus on improving...

Whales Accumulate $250M in Bitcoin Ahead of Easter Weekend Calm

Institutional investors, including Abraxas Capital and Michael Saylor's Strategy, are increasing Bitcoin holdings ahead of Easter weekend.Market analysts predict a quieter trading period after...

Must Read

What Are Anonymous Debit Cards And How Do They Work?

You've heard about anonymous debit cards, but what are they really? Anonymous Debit Cards are cards that let you make purchases without revealing your...