GameStop wipes out $3B in market cap as stockholders question Bitcoin plan
According to analysts, the lukewarm response reflects concerns that GameStop may be trying to distract investors from deeper issues with its business model.
GameStop shed nearly $3 billion in market capitalization on March 27 as investors second-guessed the videogame retailer’s plans to stockpile Bitcoin (BTC), according to data from Google Finance.
On March 26, GameStop tipped plans to use proceeds from a $1.3 billion convertible debt offering to buy Bitcoin — an increasingly popular strategy for public companies looking to boost share performance.
GameStop’s announcement came a day after it proposed building a stockpile of cryptocurrencies, including Bitcoin and US dollar-pegged stablecoins.
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