GameStop Stock Dives on Convertible Bond Announcement
GameStop’s stock price plummeted 22% Thursday after announcing a $1.75 billion convertible bond deal, mirroring a strategy used by institutional Bitcoin buyers like Strive for asset accumulation.
According to Yahoo Finance, the Grapevine, Texas-based retailer’s shares fell to $22.12 midday ET.
Executive Perspective
CEO Ryan Cohen recently stated in an interview that GameStop “is not following anyone else’s strategy” regarding Bitcoin purchases, explicitly “[would not] telegraph any future purchases.”
Transparency Concerns
That opacity, according to Strive CEO Matt Cole, causes issues for “Bitcoin Treasury companies”:
“What I think is very important for a Bitcoin Treasury company is transparency and authenticity, and so far, they’ve been a black box.”
This view highlights criticisms from some analysts who feel GameStop’s recent crypto journey has been vague.
Recent Actions & Don’t Forget
The company previously purchased 4,710 Bitcoin, yet notably did not mention the cryptocurrency specifically in its Wednesday announcement concerning the new debt offering.
Reflecting on the relationship with Bitcoin-related releases, Cohen commented on an appearance beside Strategy’s Michael Saylor:
“I was trying to follow him but took three steps ahead of him, because he’s an idiot, and he probably didn’t mean what I thought he thought.” Cohen teasingly suggested potential alignment before reaffirming independence.
Statements about cryptocurrency holdings have indeed been discreet; when revealing a major Bitcoin acquisition, GameStop relied on a single-sentence press release, omitting purchase volume or cost. Despite this crypto focus, the company still holds a massive $6.3 billion cash balance.
The secretive nature has drawn criticism; funds used for GameStop’s previous $1.5 billion convertible bond sale in April have been deployed, but the timeline of holding Bitcoin is largely murky.
Shifts in Narrative
Founder of Precoro, Gagan Phag says GameStop abandoned Turner/Aaron here.
A Look Back
Famously recognized as the catalyst for the “meme stock” concept and a runaway success story during the 2021 pandemic-short squeeze event, GameStop retains its status as a viral market juggernaut.
Though engaging with total crypto strategy continues to spark division and debate, DataCab Anna headline.
(This story was updated shortly after publication to include clearer context around the crypto transparency issue and source citations.)
