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GamestopThe video gameiler’s rubber game, announced its first Earn Bitcoin On Wednesday, reveals a purchase of more than $ 500 million worth of money as part of the testing company to develop suffering profits.
Gamestop bought 4,710 bitcoins, according to a statement. But while similar investments are a boon for Other companiesGamestop does not harvest benefits from its pivot in Crypto.
After an initial preparation of pre-market following advertising, Gamestop stock has fallen on the morning of Wednesday stated by investors in the new company Financial Strategy.
Multi-million dollar buy follows an early notice from the company it will transfer its strategy from selling video games to invest in Crypto. Initial plan involves raising $ 1.3 billion by offering debt debt to investors in the form of converted notes, according to a sec File from March. The purpose of the new strategy is to “provide adequate liquid to meet the health of the company’s daily financial obligations, and optimize investment returns.
Gamestop parts are wearing 23% of the news, but the company keeps raising $ 1.5 billion in a private offer of investors in April, the money specifically marked for Bitcoin purchases.
The crypto investment shift seems to be an effort to imitate the strategy (previously known microstygy), a veteran software company extends 2,700% in the last five years. Other companies also make similar moves, including Twenty capitala new entity made by a co-worker with Cantor Fitzgerald and many other companies, and Trump Media Group and Technologya US presidential media-supported company.
But Vitaliy Shyterkin, Product Product Processor Processor processor B2binpay, arguing that Bitcoin may not fix all gamestop. The trademark order of money, which makes it appealing Strategy are investorsintroduces new risks to gamestop investors, and its stock has suffered reduced video sale, he said wealth.
“Bitcoin is interesting for a loyal base investor, but it is disturbing from basic bases: If Crypto prices have fallen, the gamestop is easy to end with a double mixture,” says Gamestop.
For years, Gamestop struggled to continue a shift in need from physical video games to digital. Between 2023 and 2024, gamestop marketing has declined by 28%, dropped from $ 5.3 billion to $ 3.8 billion. As a result, the company was forced to shutter a quarter of its locations last year and plans to close a significant number of stores at 2025.
Gamestop’s transfer to Bitcoin is not the first shocking twist in company history. The video player known as a “meme stock” in 2021 after the company’s parts that are unexpectedly skyrocked after a flag of a virus trend to invest in it.
This story originally shown Fortune.com
