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GameStop Raises $450M Amid Bitcoin Treasury Talk But Stock Unchanged
April 24, 2025
GameStop shares remained relatively unchanged despite raising $450 million in a revised private convertible note offering, according to a Monday filing with the US Securities and Exchange Commission.
The additional subscription, drawn from an initial $2.25 billion private convertible note program that could include Bitcoin investments, has reportedly been earmarked for general corporate purposes, potentially including acquisitions and treasury growth.
At current Bitcoin prices around $108,000, this injection could push GameStop’s existing Bitcoin holdings significantly higher, raising questions about the retailer’s treasury management strategy compared to previous corporate Bitcoin allocations.
The Muted Stock Reaction: More Parallel Than Coincidence
Trading data from Google Finance shows GameStop shares (GME) touched a low of $22.45 during Monday’s session, a slight 2.5% drop from the opening price, before recovering to $23.55 following Wednesday’s close.
This slight movement mimics the pattern seen when GameStop announced its plan in May to allocate $500 million towards buying Bitcoin, an announcement which preceded a similar sharp dip.
Unlike GameStop’s previous Bitcoin announcement, however, other corporate Bitcoin announcements saw dramatic positive stock reactions:
Metaplanet’s stock climbed 22% after revealing Bitcoin investments. DigiAsia Corp surged 91% and Blockchain Group stock jumped 225% after publicizing March’s Bitcoin treasury purchases.
Insights: Strategy Execution Over Quantity
Vincent Liu, chief investment officer at Kronos Research, suggested that corporate Bitcoin treasuries require much more than simple ownership. “It’s not just buying Bitcoin. It’s how and why,” Liu explained. “Clear strategy and strong execution build trust and attract liquidity, but if it’s just hype or a ‘sell the news’ event like GameStop, the impact will be muted.”
This analysis highlights the difficulty companies face in aligning Bitcoin treasury moves with market sentiment.
Previous Crypto Ventures, Current Treasury Strategy
GameStop has a history of crypto experimentation. The company previously explored a crypto wallet for customers, shuttered in November 2023 amid regulatory concerns, and launched an NFT marketplace that closed early in 2024.
Related Links:
Blockchain Group adds $68M in Bitcoin to corporate treasury
Hodler’s Digest: Bitcoin $200K ‘obvious’ breakout
Bitcoin News: Bitcoin $200K ‘obvious’ breakout, GameStop’s first BTC buy
