Shares of videogame retailer GameStop have fallen by more than 25% after the company announced its plan to purchase Bitcoin worth $1.3 billion using convertible note offerings.
GameStop's New Move: Bitcoin Acquisition
GameStop has announced plans to acquire Bitcoin, following Strategy's example, which is the largest Bitcoin holder currently. This move has sparked significant discussion and is referred to as the 'infinite money glitch'.
Investor Reaction and Stock Decline
GameStop's shares plunged more than 25% immediately after the announcement. Many investors were not inspired by the idea of investing in Bitcoin, leading to a sharp stock decline.
Expert Opinions and GameStop's Future
Various experts are providing opinions on GameStop's decision. For instance, Kip Herriage, the managing partner at Vertical Research Advisory, believes the company should invest more than $2.5 billion in Bitcoin and predicts stock growth. Fold co-founder and CEO Will Reeves suggests that the stock plunge isn't necessarily bad and signifies a transition to a new company era.
GameStop’s decision to become one of the major players investing in Bitcoin has received mixed reactions from investors and experts. This move is expected to impact the company's future and its market position significantly.
