Gamestop is investing $ 1.3 billion in Bitcoin: A brave step into the world of cryptocurrencies
<p> <strong> Gamestop is investing $ 1.3 billion in Bitcoin: A brave step into the world of cryptocurrencies </strong> </p>
Gamestop plans Bitcoin investments in the amount of $ 1.3 billion
In a surprising turn, the video game dealer Gamestop plans to convert $ 1.3 billion in Bitcoin (BTC). This decision was made by a unanimous decision by the board and could bring Gamestop between 14,723 and 15,140 BTC, based on the current Bitcoin courses.
Bitcoin purchase by Gamestop
On Tuesday, Gamestop announced that there is no defined upper limit for the amount of Bitcoin that can be purchased. The amount of $ 1.3 billion could enable the company to hoard a considerable amount of Bitcoin if the latest price fluctuations are taken into account. Last Bitcoin courses were between 85,861.46 and 88,292.16 dollars in the
In line with the strategy of Microstrategy, Gamestop plans to obtain funds for buying Bitcoin by the emission of 0 % convertable bonds (senior notes). These bonds are sold through a private offer of institutional buyers and are classified as unsecured liabilities of the company. The due date of the bonds is dated on April 1, 2030, unless they are converted, bought back or repaid.
Last month, Gamestop increased its barres reserves to $ 4.77 billion. This sum represents a significant increase compared to the $ 921.7 million reported in February 2024. The planned Bitcoin allocation would currently make up 27.25 % of the company's barres reserves.
Review of the Gamestop Short Squeeze
The company, which was founded in 1980, experienced a significant decline in sales in the late 2010s, as more and more customers switched to online shopping. Bad investment decisions, such as getting started with smartphone trading, tightened the situation.
In a remarkable event, the Reddit community "Wallstreetbets" discovered that the proportion of empty sales at Gamestop was over 100 %. This information led to a strong buying wave that triggered the so-called "short squeeze" and catapulted the share price to over $ 500 per share.
This event went down in history as a "Gamestop Short Squeeze" and even inspired a film entitled "Dumb Money", which was published in 2023. Although the film, which prominent actors such as Paul Dano and Shailene Woodley had on board, flopped at the box office, it strengthened the public interest in the history of Gamestop and the power of the small investors.
Today, Gamestop has a market capitalization of $ 12,671 billion, and the shares were rated $ 28.36 per piece on Wednesday. This advancement of the company illustrates the growing importance and influence of small investors on the market, which forces institutional investors to rethink their strategies.