GameStop Drops 11% Despite $1.75B Bitcoin Bet
The post GameStop Drops 11% Despite $1.75B Bitcoin Bet appeared on BitcoinEthereumNews.com.
Key Notes Despite the revenue shortfall, GameStop reported a net income of $44.8 million, rebounding from a $32.3 million net loss a year ago. GameStop announced plans to raise $1.75 billion for additional Bitcoin purchases through convertible notes maturing in 2032.The company also plans to use the proceeds for general corporate purposes and potential acquisitions. Once Wall Street’s favourite, GameStop Corp (NYSE: GME) is witnessing massive selling pressure this week, despite doubling down on its Bitcoin buying plans. GME stock price tanked 5.27% on trading hours on June 11, and another 11% in the after-market hours, collapsing all the way to $25.34 levels. The stock price has lost almost all of its gains, following GameStop’s Bitcoin Reserve official announcement last month. The reason behind the recent GME stock crash is the below-expected Q1 financial results reported by the firm. GameStop (GME) Stock Crashes on Poor Q1 Results For the first quarter of 2025, GameStop reported revenues of $732.4 million, falling short of analyst projections of $754.2 million and marking a 17% decline from $881.8 million in the same quarter last year. The Bitcoin buying company attributed the drop to persistent challenges in physical game sales. Despite the revenue dip, GameStop achieved a net income of $44.8 million, a significant turnaround from the $32.3 million net loss recorded in the first quarter of the previous year. Operating losses also improved, narrowing to $10.8 million compared to $50.6 million in Q1 2024. However, despite this, the GME stock has reacted negatively even as the company announced plans to raise an additional $1.75 billion for further Bitcoin purchases. Will Bitcoin Come to the Rescue? Following the footsteps of Strategy’s Michael Saylor, Gamestop added 4,170 Bitcoins to its treasury following a $1.5 billion fundraise through convertible note offerings back in April. Now, the firm…
Filed under: News - @ June 12, 2025 8:30 am