The NYSE imposed restrictions on short selling of GameStop stock following a sharp increase in trading volumes amid the company's plans to acquire Bitcoin.
Surge in GameStop Short Sale Volume
The New York Stock Exchange enforced a short sale restriction on GameStop after trading volumes reached their highest in nine months. GameStop's short sale volume increased by 234% over 24 hours, reaching 30.85 million shares sold on March 27.
GameStop's Plans to Buy Bitcoin
GameStop shares dropped over 22% following the company's announcement to purchase Bitcoin as part of its strategy to strengthen financial performance. GameStop issued $1.3 billion in zero-percent convertible notes to finance this strategy.
Analysis and Criticism of GameStop's Strategy
Tastylive founder Tom Sosnoff questioned GameStop's plans: “It feels like adding 'dot com' to a company's name.” Investors and experts debate the rationality and potential risks of this GameStop move.
Short sale restrictions and plans to acquire Bitcoin led to a decline in GameStop shares. The company’s strategy faced criticism for its riskiness and uncertainty regarding future development.
