Will GameStop Buy More Bitcoin? Shares Plunge Amid ‘Black Box’ Criticism Over Strategy
The post Will GameStop Buy More Bitcoin? Shares Plunge Amid ‘Black Box’ Criticism Over Strategy appeared on BitcoinEthereumNews.com. In brief GameStop’s stock price dropped 22% after the video game retailer said it would offer $1.75 billion worth of convertible bonds to investors. GameStop CEO Ryan Cohen recently said that the firm is “not following anyone else’s [Bitcoin] strategy” and won’t telegraph any future purchases. “What I think is very important for a Bitcoin Treasury company is transparency and authenticity, and so far, they’ve been a black box,” Strive CEO Matt Cole told Decrypt. GameStop shares plummeted on Thursday after the video game retailer announced that it would offer investors $1.75 billion worth of convertible senior notes, a form of corporate debt that Bitcoin-buying firms like Strategy have tapped to accumulate the asset. The Grapevine, Texas-based firm’s stock price had dropped 22% to $22.12, as of noon Eastern Time, according to Yahoo Finance. GameStop shares changed hands around $25.40 in late March, when the company said that it could start leveraging Bitcoin and other cryptocurrencies as treasury reserve assets after updating its investment policy. In a blog post, GameStop said that proceeds from the convertible bonds, which “will not bear regular interest,” will go toward “general corporate purposes,” including investments consistent with its investment policy, and acquisitions, according to a company blog post. Although GameStop purchased 4,710 Bitcoin last month, the company did not specifically mention Bitcoin in its Wednesday announcement. The company has held other cryptocurrencies before as part of its ill-fated gambit to establish an NFT marketplace, too. GameStop CEO Ryan Cohen hinted at the company’s Bitcoin purchase when posing for a photo alongside Strategy co-founder and Executive Chairman Michael Saylor earlier this year. However, he said in a recent interview that the company would not telegraph any future Bitcoin purchases, and that it’s “not following anyone else’s strategy.” The way in which the company has…
The post Will GameStop Buy More Bitcoin? Shares Plunge Amid ‘Black Box’ Criticism Over Strategy appeared on BitcoinEthereumNews.com.
In brief GameStop’s stock price dropped 22% after the video game retailer said it would offer $1.75 billion worth of convertible bonds to investors. GameStop CEO Ryan Cohen recently said that the firm is “not following anyone else’s [Bitcoin] strategy” and won’t telegraph any future purchases. “What I think is very important for a Bitcoin Treasury company is transparency and authenticity, and so far, they’ve been a black box,” Strive CEO Matt Cole told Decrypt. GameStop shares plummeted on Thursday after the video game retailer announced that it would offer investors $1.75 billion worth of convertible senior notes, a form of corporate debt that Bitcoin-buying firms like Strategy have tapped to accumulate the asset. The Grapevine, Texas-based firm’s stock price had dropped 22% to $22.12, as of noon Eastern Time, according to Yahoo Finance. GameStop shares changed hands around $25.40 in late March, when the company said that it could start leveraging Bitcoin and other cryptocurrencies as treasury reserve assets after updating its investment policy. In a blog post, GameStop said that proceeds from the convertible bonds, which “will not bear regular interest,” will go toward “general corporate purposes,” including investments consistent with its investment policy, and acquisitions, according to a company blog post. Although GameStop purchased 4,710 Bitcoin last month, the company did not specifically mention Bitcoin in its Wednesday announcement. The company has held other cryptocurrencies before as part of its ill-fated gambit to establish an NFT marketplace, too. GameStop CEO Ryan Cohen hinted at the company’s Bitcoin purchase when posing for a photo alongside Strategy co-founder and Executive Chairman Michael Saylor earlier this year. However, he said in a recent interview that the company would not telegraph any future Bitcoin purchases, and that it’s “not following anyone else’s strategy.” The way in which the company has…
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