GameStop reveals bitcoin plan, but market reaction remains mixed – Crypto News – Crypto News
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GameStop reveals bitcoin plan, but market reaction remains mixed GameStop reveals bitcoin plan, but market reaction remains mixed

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GameStop reveals bitcoin plan, but market reaction remains mixed – Crypto News

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9 months ago

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Bitcoin’s latest price activity has been anything but straightforward, even as GameStop published plans to add the cryptocurrency to its balance sheet.

After briefly pushing toward $89,000 in overnight trading, Bitcoin began pulling back during US market hours on Wednesday, slipping roughly 3% to around $86,500 by early afternoon. Other major cryptocurrencies also declined, with ether (ETH), solana (SOL), and AAVE down 3% – 4% in the same period. The CoinDesk 20 Index, which tracks the broader cryptocurrency market, dropped 1.9% in 24 hours.

The decline in cryptocurrency prices coincided with weakness in US equities. The S&P 500 and Nasdaq fell 0.8% and 1.6% respectively, erasing most of their early-week gains. Analysts pointed to renewed uncertainty around the US debt ceiling and upcoming tariffs set to take effect on April 2 as factors weighing on investor sentiment.

“Uncertainty surrounding US trade policy and the broader political landscape remains front of mind,” said analysts at QCP Capital in a Telegram post. “Until then, we expect more sideways volatility.”

While macroeconomic concerns linger, cryptocurrency traders were also watching how markets would digest GameStop’s announcement.

GameStop’s Bitcoin treasury strategy fuels market speculation

GameStop confirmed plans to allocate a portion of its $4.8 billion in cash to Bitcoin and US dollar-pegged stablecoins on Tuesday. The company didn’t quantify its invest or when purchases will begin, but the announcement sparked a sharp rise in its stock price. GME shares jumped 16% during Wednesday’s regular trading.

The announcement followed earlier comments from CEO Ryan Cohen that hinted at interest in Bitcoin. He was joined by Matt Cole, CEO of Strive Asset Management – one of GameStop’s ETF stakeholders – who also advocated for a Bitcoin allocation.

There was widespread speculation online about the scale of GameStop’s potential investment. Anthony Pompliano, founder of Professional Capital Management, suggested the company was unlikely to go through the process of revising its investment policy for a small allocation. “You only put the time and energy to get the change to your investment policy if you are looking to put a material amount of your cash into Bitcoin,” Pompliano said, adding that Cohen’s social media activity shows engagement with Bitcoin-related content.

MicroStrategy’s Michael Saylor also weighed in with a poll asking his followers how much Bitcoin GameStop would need to hold to earn credibility in the cryptocurrency community. Many respondents suggested at least $3 billion.

GameStop to raise $1.3B in convertible debt for Bitcoin and corporate use

Less than a day after announcing its Bitcoin treasury plans, GameStop revealed it would issue $1.3 billion in convertible senior notes to support those efforts. The notes will mature in five years and carry a 0% coon, with an option for underwriters to purchase up to an additional $200 million.

According to the company’s statement, proceeds from the offering will be used for “general corporate purposes,” including Bitcoin acquisitions in line with its new investment policy.

GameStop joins a growing list of companies – MicroStrategy, Semler Scientific, and Riot Platforms – using convertible debt to fund Bitcoin purchases.

Despite the fundraising move, GME shares slipped 7% in after-hours trading following Wednesday’s double-digit gain. Bitcoin, meanwhile, showed signs of recovery from its intraday dip, rebounding from $86,000 to above $87,000 shortly after the debt announcement.

(Photo by Unsplash)

See also: Sam Altman’s World Network in talks with Visa on cryptocurrency wallet integration

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Tags: Bitcoin, blockchain, cryptocurrency, Gaming

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