GameStop's $1.75B Crypto Bet Sinks Stock as Wall Street Freaks

Holy smokes! After dropping a cool $513 million on Bitcoin last month, GameStop's now gunning for another $1.75 billion, and Wall Street's losing its mind. The stock tanked over 15% as everyone's questioning whether this former game seller can pull off a wild transformation into a crypto giant.

On June 12, GME shares plummeted like a lead balloon, just hours after the once-beloved retailer dropped the bomb about a massive $1.75 billion convertible notes offering, rumored to be fueling more Bitcoin buys.

The stock was already on a downward spiral after a totally disappointing Q1 2025. On June 11, GameStop revealed a brutal 17% revenue drop, even with the online gaming craze still going strong. Shares took a 5% hit that day and kept tumbling on Thursday, as Wall Street's scratching its head, wondering if this crypto gamble can steer the company back on course.

Why GameStop is Betting Big on Bitcoin

GameStop's playing it coy, neither confirming nor denying that the $1.75 billion's destined for more Bitcoin. But their June 11 announcement dropped a hint, saying the cash would be used for "investments in a manner consistent with GameStop's Investment Policy and potential acquisitions."

Turns out, part of that policy's all about beefing up the balance sheet with digital assets, signaling a high-stakes pivot driven by desperation and big dreams. With shrinking sales and their core retail biz fading fast, GameStop's taking a page out of Strategy's book, banking on Bitcoin to hedge against economic chaos and fuel explosive growth.

Strategy's all-in Bitcoin move totally flipped its market story. Since diving into BTC in August 2020, its stock's skyrocketed 256%, jumping from $110 to $392 per share by early June, blowing past the S&P 500 and tech sector benchmarks. Meanwhile, their main software revenue's been stuck in neutral, dipping from $481 million in 2020 to $463 million in 2024, making Bitcoin the ultimate star driving shareholder value.

With Bitcoin's long-term potential and big institutions jumping on board, this high-risk, high-reward play could be GameStop's ticket to a total reinvention. By snagging 4,710 BTC in May and hinting at more through the new convertible notes, the company's putting all its chips on Bitcoin, betting it can reignite investor faith and tackle its operational woes head-on.

And get this - GameStop's latest Bitcoin haul catapults them to the 13th biggest corporate holder of the original cryptocurrency, according to BitcoinTreasuries.NET data.