{"id":125948,"date":"2025-03-27T19:16:50","date_gmt":"2025-03-27T19:16:50","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125948"},"modified":"2025-03-27T19:16:50","modified_gmt":"2025-03-27T19:16:50","slug":"gamestop-wipes-out-3b-in-market-cap-as-stockholders-question-bitcoin-plan","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125948","title":{"rendered":"GameStop wipes out $3B in market cap as stockholders question Bitcoin plan"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsGameStop shed nearly $3 billion in market capitalization on March 27 as investors second-guessed the videogame retailer\u2019s plans to stockpile Bitcoin (BTC), according to data from Google Finance.\u00a0<br \/>\nOn March 26, GameStop tipped plans to use proceeds from a $1.3 billion convertible debt offering to buy Bitcoin \u2014 an increasingly popular strategy for public companies looking to boost share performance.\u00a0<br \/>\nGameStop\u2019s announcement came a day after it proposed building a stockpile of cryptocurrencies, including Bitcoin and US dollar-pegged stablecoins.\u00a0<br \/>\nInvestors initially celebrated the news, sending shares up 12% on March 26. Shareholders\u2019 sentiment reversed on March 27, pushing GameStop\u2019s stock, GME, down by nearly 24%, according to Google Finance.\u00a0<br \/>\nGameStop\u2019s stock reversed gains on March 27. Source: Google FinanceRelated:\u00a0GameStop buying Bitcoin would \u2018bake the noodles\u2019 of TradFi: Swan exec<br \/>\nChilly reception<br \/>\nAnalysts say the chilly reception reflects fears GameStop may be seeking to distract investors from deeper problems with its business model.\u00a0<br \/>\n\u201cInvestors are not necessarily optimistic on the underlying business,\u201d Bret Kenwell, US investment analyst at eToro, told Reuters on March 27.\u00a0<br \/>\n\u201cThere are question marks with GameStop&#8217;s model. If bitcoin is going to be the pivot, where does that leave everything else?\u201d<br \/>\nThe sell-off also highlights investors\u2019 more bearish outlook on Bitcoin as macroeconomic instability, including ongoing trade wars, weighs on the cryptocurrency\u2019s spot price.\u00a0<br \/>\nBitcoin is down around 7% year-to-date, hovering around $87,000 as of March 27, according to Google Finance.<br \/>\nBitcoin\u2019s \u201cprice briefly jumped to $89,000 but has now reversed its trend,\u201d Agne Linge, decentralized finance (DeFi) protocol WeFi\u2019s head of growth, told Cointelegraph.<br \/>\nLinge added that trade wars triggered by US President Donald Trump\u2019s tariffs remain a concern for traders.<br \/>\nPublic companies are among the largest Bitcoin holders. Source: BitcoinTreasuries.NETCorporate Bitcoin treasuries<br \/>\nGameStop is a relative latecomer among public companies creating Bitcoin treasuries.<br \/>\nIn 2024, rising Bitcoin prices sent shares of Strategy soaring more than 350%, according to data from FinanceCharts.\u00a0<br \/>\nFounded by Michael Saylor, Strategy has spent more than $30 billion buying BTC since pioneering corporate Bitcoin accumulation in 2020, according to data from BitcoinTreasuries.NET.NET.\u00a0<br \/>\nStrategy\u2019s success prompted dozens of other companies to build Bitcoin treasuries of their own. Public companies collectively hold nearly $58 billion of Bitcoin as of March 27, the data shows.\u00a0<br \/>\nMagazine:\u00a0SEC\u2019s U-turn on crypto leaves key questions unanswered<a href=\"https:\/\/cointelegraph.com\/news\/gamestop-loses-3b-market-cap-investors-bitcoin-buys?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsGameStop shed nearly $3 billion in market capitalization on March 27 as investors second-guessed the videogame retailer\u2019s plans to stockpile Bitcoin (BTC), according to data from Google Finance.\u00a0&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125948"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125948"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125948\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125948"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}