GameStop loses $3B after Bitcoin strategy concerns

GameStop's market capitalisation dropped by nearly $3 billion on March 27 following investor scepticism over its plan to purchase Bitcoin (CRYPTO:BTC) using proceeds from a $1.3 billion convertible debt offering.  

The announcement, made on March 26, initially boosted GameStop's stock by 12%, but the gains reversed sharply the next day, with shares falling by nearly 24% according to Google Finance.  

The company had also proposed creating a cryptocurrency reserve, including Bitcoin and stablecoins pegged to the US dollar.  

Analysts suggest that the lukewarm reception from investors reflects broader concerns about GameStop’s business model.  

“Investors are not necessarily optimistic on the underlying business. There are question marks with GameStop's model. If Bitcoin is going to be the pivot, where does that leave everything else?” noted Bret Kenwell, an investment analyst at eToro.

The sell-off coincided with a bearish sentiment toward Bitcoin amid macroeconomic instability, such as trade wars triggered by US tariffs.  

Bitcoin’s price, which briefly climbed to $89,000 on March 26, dropped back to $87,000 by March 27.  

Agne Linge of WeFi commented that these trade tensions remain a significant concern for cryptocurrency traders.  

GameStop's move to accumulate Bitcoin follows a trend among public companies building cryptocurrency treasuries.  

Firms like Strategy have seen substantial gains from such strategies in recent years.  

Strategy’s pioneering efforts in corporate Bitcoin accumulation since 2020 have inspired other companies to follow suit.  

Collectively, public companies now hold nearly $58 billion worth of Bitcoin as of March 27.  

However, GameStop faces unique challenges as it struggles to adapt to changing consumer preferences and declining physical game sales.  

The company has closed over 400 stores in 2025 alone, reflecting broader shifts toward online marketplaces.  

While some analysts view GameStop’s Bitcoin strategy as a potential pivot toward innovation, others caution that it may be insufficient to address deeper structural issues within the company.  

“If this is meant to distract from underlying problems, it might not work long-term,” Kenwell remarked.

At the time of reporting, the Bitcoin (BTC) price was $85,868.56.