Gamestop store with Luigi's Mansion ad in window. Source: Eric BVD - stock.adobe.com

Key Takeaways:

GameStop lost nearly $3B in market value after announcing plans to buy Bitcoin with $1.3B from a debt offering.
The stock surged 12% initially but fell 24% the next day amid investor concerns over the company’s core business model.
Despite joining a broader corporate trend of adding Bitcoin to balance sheets, skepticism remains about GameStop’s strategic pivot.

GameStop lost nearly $3 billion in market value on March 27 following its announcement to invest in Bitcoin using proceeds from a $1.3 billion convertible debt offering.

Initially, the news of building a crypto treasury, including Bitcoin and stablecoins, caused a 12% stock surge.

An announcement regarding Bitcoin pic.twitter.com/gG8JRarIok
— GameStop (@gamestop) March 25, 2025

However, investor enthusiasm quickly faded, leading to a 24% drop in shares the next day.

Analysts attribute the sharp reversal to skepticism about GameStop’s core business model, which many believe remains uncertain.

According to eToro analyst Bret Kenwell, relying on Bitcoin may distract from addressing the company’s fundamental issues.

The sell-off also coincided with broader caution in the crypto market, as Bitcoin faced downward pressure amid global economic concerns and was trading around $87,000—down 7% for the year.

GameStop joins a growing number of companies adopting Bitcoin treasury strategies, inspired by firms like Strategy, which has seen massive gains after accumulating over $30 billion in Bitcoin.

Despite the trend, GameStop’s crypto pivot has not reassured investors, raising doubts about whether digital assets can meaningfully improve its long-term outlook.

As of now, public companies collectively hold around $58 billion in Bitcoin, but GameStop’s approach highlights the risks of following market trends without a solid foundational business strategy.