US EditionGameStop Shares Tank More than 20% as Retailer Reveals Convertible Debt Offering, Trading Cards Plan
- On June 11, 2025, GameStop disclosed that it would issue $1.75 billion in convertible senior notes to qualified institutional buyers.
- This capital raise follows GameStop’s ongoing challenges, including a 17% revenue drop in Q1 2025 and a strategic shift toward bitcoin and trading cards.
- GameStop purchased about 4,710 bitcoins last month worth over $500 million and CEO Ryan Cohen emphasized focusing on physical trading cards from Pokémon and Magic: The Gathering.
- Wedbush analyst Michael Pachter criticized GameStop’s stock valuation as trading at a higher premium to cash than MicroStrategy’s bitcoin holdings and called the bitcoin strategy risky, citing reliance on “greater fools.”
- The company intends to use the offering proceeds for general corporate purposes, including investments and potential acquisitions, while Wall Street remains uncertain if replicating MicroStrategy’s bitcoin success is likely.
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39 Articles
39 Articles
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5
Center
3
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Coverage Details
Total News Sources39
Leaning Left5Leaning Right0Center3Last UpdatedBias Distribution63% Left
Bias Distribution
- 63% of the sources lean Left
63% Left
L 63%
C 38%
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