GameStop Stock News

Shares of GameStop fell more than 15% on Thursday after the company's plan to finance its bitcoin pivot raised questions about the timing of its move and its strategy to turn around its struggling retail business.

GameStop, the video game retailer famed for becoming a meme stock and causing chaos in the stock market during the COVID-19 pandemic, is back in the spotlight for a new pursuit: investing in Bitcoin.

GameStop Corp (NYSE:GME) shares have pulled back after the video game retailer announced a planned $1.3 million debt issue of convertible notes due in 2030 to purchase Bitcoin in addition to funding general corporate activities. Shares of GameStop fell 12% to about $25, erasing gains from Wednesday's session.

GameStop Corp.'s latest earnings report was ho-hum, but the stock surged 12% on news of allowing Bitcoin ownership. The GME stock chart remains neutral, with no compelling reasons to buy or short it, despite the RSI nearing 70. GameStop's revenue continues to decline, and the company holds nearly $5 billion in cash without clear plans for its use.

The latest sell-off came after the video game chain announced plans to $1.3 billion through the sale of convertible senior notes to purchase bitcoin.

The core business suffers and contracts, but the cash balance has proven sufficient to produce profitability, and now we know what CEO Ryan Cohen wants to do with it.

GameStop announced plans for a private offering of $1.3 billion in convertible senior notes, aiming to use the proceeds for general corporate purposes, including to invest in Bitcoin.

Stock futures were mostly higher Thursday even as President Donald Trump slapped 25% tariffs on all cars made outside of the United States, leading to worries over what the trade war will mean to the U.S. and global economies.