A Gamestop business can be seen on April 4, 2025 in New York City at the Union Square.
Michael M. Santiago | Getty pictures
Gamestop The shares planned on Thursday after the retailer for video games had announced plans for a convertible notes of 1.75 billion dollars that offered to finance its new Bitcoin purchase strategy. The company also said that it would focus on the trading card market.
The retailer said that he intends to use the net proceeds from the note offer for general corporate purposes, “including investments in a way that matches the investment policy of Gamestop and potential acquisitions”.
Part of the investment policy is to add cryptocurrencies to the balance sheet. Last month, Gamestop bought 4,710 bitcoins, which have more than half a billion dollars worth more than half a billion dollars.
The stock ended by 22.5%on Thursday.
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Gamestop
Gamestop follows in the footsteps of the software company Microstrategy, which is known today as a strategy and which Bitcoin has bought billions of dollars in recent years in order to become the largest company owner of the flagship cryptocurrency. This decision prompted a quick, although volatile increase for the shares of the strategy.
The strategy has published various forms of securities, including convertible debts to finance its Bitcoin purchases.
CEO Ryan Cohen recently said that Gamestop's decision to buy Bitcoin was determined by macro problems as a digital coin with a firm supply and decentralized nature, could serve as protection against certain risks.
The stationary retailer reported a decline in sales in the first quarter on Tuesday when the demand for online games increased. Sales fell by 17% compared to the previous year to $ 732.4 million.
The shares fell 5%on Wednesday after these results. Wall Street seems to be unsure that the video game dealer can imitate the success of Microstrategy.
The Wedbus Analyst Michael Pachter confirmed his underperform evaluation for Gamestop on Wednesday and said that the Meme share had benefited from “Greater Fools”, who are ready to pay more than twice as high as their assets for their shares. The WEDBUSH analyst is of the opinion that the Bitcoin purchase strategy makes little sense, since the company, which is already 2.4 times bar, probably does not achieve any larger premium by converting more money into crypto.
Regardless of this, at the company's annual meeting on Thursday, Cohen said that Gamestop focuses on trade cards as a “natural expansion” of his existing business, according to a copy via Factset. He said that this market was embedded in physical retail and had “a high margin potential”.
Gamestops Collectibles' sales in the first quarter in the first year increased by 54%in the first year, which is due to the growing demand for trade cards-especially the Pokémon Trading Card game, according to the company.
According to Data Tracker Circana, Omnibus survey showed that 19% of adults have bought Pokémon trade cards for themselves in the past six months.
The majority collect the maps as a hobby or decoration, said Circana. The company added that adults had contributed to increasing sales with toy sales, with demographic expenses for the highest expenses under all age groups in the first quarter.
—CNBCS Christina Cheddar Berk has contributed to the reporting.
Correction: Gamestop shares fell 5%on Wednesday. An earlier version incorrectly specified the percentage.