Gamestop (GME) shares plummeted more than 15% on Thursday (27), after the company’s plan involving Bitcoin (BTC) raise questions about its “timing” and its strategy to recover the company’s retail business.
The actions of the video game retailer also returned all the gains on the day before and went to their biggest daily drop since last June, after the company reported that it was offering $ 1.3 billion in convertible titles at 0% rate and maturity in 2030 to gather bitcoins.
The announcement of the purchase of Bitcoin as treasury reserve asset generated a mini euphoria between retails retail, which closely follow the so -called “meme actions”.
However, Gamestop has also announced the closing of an “significant number” of additional stores this year, signaling that its retail unit remains problematic despite attempts to resume.
“Investors are not necessarily optimistic about the underlying business,” said Bret Kenwell, Etoro’s investment analyst in the United States. “There are doubts about the Gamestop model. If Bitcoin will be the pivot, where does it leave everything else?”
The “timing” of the Bitcoin Gamestop decision is also on the radar, as the price of cryptocurrency has risen almost 27% since the US presidential election of November, although it has drastically fallen before peak records amid uncertainties about economic conditions.
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“Why (Gamestop) waited so long if they were going this way? Six months ago, nine months ago would have made much more sense,” said Kenwell.
With the losses of the day, Gamestop actions accumulate more than 23% in the year.
