GameStop saw nearly $3 billion wiped from its market capitalization on March 27 as investors grew skeptical about the company’s decision to invest in Bitcoin, according to Google Finance data.
On March 26, the video game retailer revealed plans to allocate proceeds from a $1.3 billion convertible debt offering toward Bitcoin purchases—a strategy increasingly favored by public firms aiming to boost stock value.
The announcement followed GameStop’s earlier proposal to build a reserve of cryptocurrencies, including Bitcoin and stablecoins tied to the US dollar.
Initially, the market responded positively, driving GameStop shares up 12% on March 26. However, by March 27, sentiment had soured, sending GME shares tumbling nearly 24%, per Google Finance.
Investor Skepticism
Analysts suggest that the downturn reflects concerns that GameStop’s pivot to Bitcoin may be an attempt to divert attention from broader issues with its core business model.
“Investors aren’t entirely convinced about the company’s fundamentals,” said Bret Kenwell, a US investment analyst at eToro, in a Reuters interview on March 27.
“There are doubts about GameStop’s business strategy. If Bitcoin is supposed to be the solution, what happens to everything else?”
The sell-off also points to broader investor uncertainty surrounding Bitcoin, as global economic challenges—such as ongoing trade disputes—continue to pressure the cryptocurrency’s price.
As of March 27, Bitcoin had declined approximately 7% year-to-date, hovering around $87,000, according to Google Finance.
“Bitcoin’s price briefly spiked to $89,000 but has since reversed,” noted Agne Linge, head of growth at decentralized finance (DeFi) protocol WeFi.
Linge further explained that escalating trade conflicts, fueled by tariffs from US President Donald Trump, remain a significant concern for market participants.
Bitcoin Holdings Among Public Companies
GameStop’s move into Bitcoin treasuries places it among a growing list of publicly traded firms investing in crypto.
In 2024, rising Bitcoin prices propelled Strategy’s stock to a 350% gain, according to FinanceCharts data.
Founded by Michael Saylor, Strategy has acquired over $30 billion worth of Bitcoin since pioneering corporate cryptocurrency accumulation in 2020, per BitcoinTreasuries.NET.
Inspired by Strategy’s success, numerous companies have followed suit, with public firms collectively holding nearly $58 billion in Bitcoin as of March 27.
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