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Wednesday 26th of March 2025 20:56:24

GameStop Shares Up as Company Reveals Bitcoin Investment Plan and Debt Notes

In a surprise move, GameStop, the struggling video game retailer, has announced a plan to invest in Bitcoin and issue debt notes to raise capital. The news sent shockwaves through the market, causing the company's shares to surge by over 10% in pre-market trading.

According to a filing with the Securities and Exchange Commission (SEC), GameStop plans to invest up to $100 million in Bitcoin, with the goal of diversifying its investment portfolio and potentially generating returns. The company has partnered with a third-party investment firm to manage the Bitcoin investment.

In addition to the Bitcoin investment, GameStop plans to issue up to $400 million in debt notes to raise capital and pay off some of its outstanding debts. The debt notes will have a term of five years and will bear interest at a rate of 6.5% per annum.

The news has been met with skepticism by some analysts, who question the wisdom of investing in Bitcoin and issuing debt notes in a challenging retail environment. However, others see the move as a bold attempt to revitalize the company and capitalize on the growing interest in cryptocurrencies.

GameStop's shares have been under pressure in recent months, with the company struggling to adapt to the shift towards digital gaming and online retail. The company has been working to transform its business model, but has faced significant challenges in the process.

The news sent GameStop's shares soaring in pre-market trading, with the stock rising by over 10% to $17.50 per share. The company's market capitalization has increased by over $1 billion as a result of the news.

The move is also seen as a sign of the growing interest in cryptocurrencies and digital assets among mainstream companies. As the cryptocurrency market continues to evolve and mature, it is likely that we will see more companies following in GameStop's footsteps and investing in digital assets.