Key Takeaways
- GameStop raised $450 million, possibly for Bitcoin investments, but its stock price remained flat.
- Other companies like Metaplanet and DigiAsia saw share price surges after Bitcoin buys, unlike GameStop.
- Experts stress the importance of a clear, strategic approach to corporate Bitcoin treasuries for sustained value.
GameStop revealed it raised an additional $450 million through a private convertible note offering, bringing potential investment funds to $2.7 billion.
While the funds are earmarked for general corporate purposes, including investments and possible acquisitions, Bitcoin was not explicitly mentioned.
However, the company has previously signaled plans to expand its Bitcoin treasury.
At current prices, GameStop could nearly double its existing treasury of 4,710 bitcoin if it allocated all $450 million to bitcoin purchases.
Despite this, GameStop shares traded flat following the announcement, echoing May’s lackluster stock performance after a significant Bitcoin buy.
Market reaction and comparisons
GameStop’s stock dropped 2.5% on the news, then recovered slightly, up 1.8% over five days but down 0.38% after hours.
This contrasts with other firms like Metaplanet, which saw a 22% share price jump after announcing Bitcoin acquisitions, and DigiAsia Corp, which surged 91% after a similar move.
Strategy is key for bitcoin treasuries
Vincent Liu, CIO at Kronos Research, told Cointelegraph that simply buying Bitcoin is not enough:
“It’s not just buying Bitcoin. It’s how and why. 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.”
