GameStop Shares Drop 6% Following Bitcoin Acquisition Announcement
GameStop (GME) shares fell nearly 6% as investors reacted to the company's bitcoin acquisition announcement. Key points include:
- GameStop disclosed the purchase of 4,710 bitcoin as part of its crypto treasury strategy.
- The company raised $1.3 billion to fund these acquisitions.
- Shares declined following broader market drops related to tariff announcements.
- Despite a previous increase of over 60% leading up to the announcement, the stock has now dropped nearly 20% since then.
- The $500 million bitcoin acquisition may disappoint some, given the larger capital raise and existing cash reserves.
- GameStop's market cap stands at $14 billion, making the bitcoin purchase relatively modest.