GameStop made the headlines this week when he confirmed a major Bitcoin purchase. The retailer bought 4,710 BTC For around $ 513 million. The money came from the money collected in March thanks to a sale of convertible tickets of $ 1.4 billion. This is the first time that GameStop places the crypto in its balance sheet.
Purchase of cryptography with high issues
According to a press release from the company, Gamestop used part of its product in debt to buy bitcoin. This sale of $ 1.4 billion tickets was to give the company more options beyond video games and accessories. Now, almost half a billion dollars is in crypto. It is a daring decision for a chain which is always known for its physical stores and its brick and mortar imprint.
Swings of the course of action and response of investors
Based on reports, discussions on an crypto push made GameStop actions higher at the start of this year. Rumors in February increased in stocks about 18%. Then in March, when management mentioned for the first time a possible crypto plan, the shares jumped 10%.
On May 27, the title closed at $ 35. In pre-commercial trade the next day, he was $ 36.30. During the last month, GameStop Actions have increased by around 28%. For the year, they increased by around 11%.
BTCUSD trading at $107,756 on the 24-hour chart: TradingView.com
Retail sales continue to slip
The main activity of Gamestop was not also lucky. The last quarter has shown a 25% drop in income from the same period last year. This type of slide makes it difficult to justify a high assessment.
At more than 100 × train benefits, the company is negotiated as a strong growth technological company, not a retail chain with a drop in sales. Some investors fear that the Bitcoin The game is a distraction of reducing the basics of the store sector.
The loading of the debt raises concerns
Use of debt to buy crypto Add another risk layer. Convertible tickets can be transformed into actions if the course of action reaches certain levels. Which dilutes existing shareholders. If Bitcoin takes a dive, GameStop could face paper losses on his investment of $ 513 million. At the same time, he still has to manage the cost of his debt and keep the lights on in his stores.
Gamescoin's betting bet shows how ready the company is ready to shake its image as a decisive retailer. The game could bear fruit if the crypto continues to rally. But that could also turn around if Bitcoin tumbles down or if the core business is not recovered. Be that as it may, this decision will be closely monitored by Crypto fans and longtime customers of Gamesop.
Gaming star image, tradingView graphic
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