GameStop (GME) shares plunged nearly 21% in 24 hours, trading at $22.85 as of Thursday morning (UTC) —marking a steep drop.
The decline comes amid the company’s recent Bitcoin acquisition and a high-profile capital raise announcement that left investors uncertain.
In late May, GameStop made headlines after allocating $513 million to purchase 4,710 BTC, placing it among the top 15 public Bitcoin holders. The move initially fueled speculation that GameStop might continue expanding its Bitcoin reserves. However, recent developments have clouded that outlook.
Capital Raise Without Bitcoin Clarity
Earlier this week, GameStop revealed plans to raise $1.75 billion through a private offering of senior convertible notes. While the move is aimed at strengthening the company’s balance sheet, management didn’t specify whether the new funds would be used to expand Bitcoin holdings or support core operations.
This lack of clarity appears to have rattled the market. Shares dropped 6% immediately after the announcement, and continued selling pressure pushed the stock down further. The Bitcoin narrative, which often acts as a bullish catalyst for companies adopting crypto strategies, failed to support GameStop in this case.
Q1 Miss Adds to Bearish Sentiment
Adding to the pressure, GameStop’s Q1 2025 earnings disappointed investors. The company reported $732.4 million in net sales, down 17% from the previous year’s $881.8 million, missing analyst expectations. The earnings miss, coupled with an unclear path forward for the raised capital, has fueled uncertainty among shareholders.
Kosta Gushterov
Reporter at Coindoo
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Source: https://coindoo.com/gamestop-sinks-21-amid-bitcoin-holdings-and-fundraising-plan/