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GameStop Loses $3B in Value After Bitcoin Investment Plan Raises Concerns

According to Google Finance, GameStop saw its market value drop by nearly $3 billion on March 27 after investors started questioning the company’s new strategy to invest in Bitcoin (BTC).

On March 26, the company revealed plans to use funds from a $1.3 billion convertible debt offering to buy Bitcoin. This move mirrors a growing trend among public companies using crypto investments to try and boost stock prices.

The announcement followed GameStop’s proposal to create a reserve of digital currencies, including Bitcoin and USD-backed stablecoins. Initially, investors responded positively, sending GameStop (GME) shares up 12% that day. But the excitement faded quickly, and shares tumbled nearly 24% on March 27.

Analysts say the sharp turnaround in investor sentiment may reflect doubts about GameStop’s core business. “Investors aren’t confident in the fundamentals,” eToro analyst Bret Kenwell told Reuters. “If Bitcoin becomes the focus, it raises questions about the rest of the business.”

The stock sell-off also shows that investors are becoming more cautious about Bitcoin. Uncertainty in the global economy — especially from ongoing trade tensions — puts pressure on the cryptocurrency’s price.

Bitcoin has fallen around 7% since the start of the year, trading near $87,000 as of March 27. It briefly hit $89,000 before sliding again, according to Agne Linge, head of growth at DeFi platform WeFi. She noted that market concerns over tariffs and trade disputes driven by U.S. President Donald Trump’s policies are growing.

GameStop is joining the Bitcoin trend later than many others. One early adopter, Strategy (founded by Michael Saylor), saw its shares soar over 350% in 2024 thanks to rising Bitcoin prices, according to FinanceCharts. Strategy has spent over $30 billion on Bitcoin since 2020, per BitcoinTreasuries.net.

Inspired by Strategy’s success, many public companies have followed suit. As of March 27, they collectively hold close to $58 billion in Bitcoin.

Simonas Brazionis

Blockchain Expert

Simonas is a crypto and blockchain expert with 6 years of experience. Passionate about the industry he educates others on blockchain technology, and continuously expands his knowledge. He has helped many newcomers understand crypto, navigate investments, and stay informed about trends like DeFi and NFTs.