Despite the step of Gamestop, some analysts warned of evaluation risks in connection with the volatility of Bitcoin. Gamestop reported a 28 % decline in quarterly turnover compared to the previous year to $ 1.28 billion. The adjusted EBITDA for the financial year also fell to $ 36.1 million of $ 64.7 million
- Gamestop has a new financial strategy that provides for an investment of $ 1.4 billion in BTC.
- The company’s decision on March 26 was unanimous.
Bitcoin officially provides for the new investment policy from Gamestop as the most important financial reserve. The investment committee led by CEO Ryan Cohen will manage the Bitcoin purchases.
Gamestop’s decision was followed by internal discussions and market observations of the past few months. The company’s shares rose by almost 12 %after the announcement, but fell by more than 8 %again in post -interconnected trade. This price movement reflected the mixed reactions of the investors who had adjusted to the unexpected change.
To support his strategy acquires Gamestop Bitcoin From different sources. The company also maintains the flexibility with regard to the scope of its cryptocurrency investments. Updated politics reflects the long -term commitment of gamestop in digital assets in a changing market dynamics.
Change bonds will finance the Bitcoin initiative
Gamestop plans to issue priority convertible bonds of $ 1.3 billion with due date in 2030 to finance its Bitcoin purchases. These bonds are paid off with an interest rate of 0 % and enable buyers to convert them into stocks or cash. The change price is $ 28.46 per share and offers additional flexibility in the capital structure.
The company stated that fundraising can increase up to $ 200 million depending on the demand from investors. This optional expansion could increase the total income to $ 1.5 billion if they are fully exercised. Gamestop also intends to use part of its existing barres reserves to support the Bitcoin takeover.
In the fourth quarter, Gamestop had liquid funds of $ 4.775 billion, which strengthens the company’s ability to carry out the plan. In the past, the company has achieved income through investments in treasure change. These efforts brought Gamestop about $ 220 million in interest income last year.
The step follows the latest company trends because several companies increase their commitment to Bitcoin. On February 8, Gamestop CEO Ryan Cohen met with Strategy CEO Michael Saylorund triggered initial speculation. Strategy, formerly Microstrategy, has invested strongly in Bitcoin and currently holds more than 447,000 tokens.
The bidding administration has increased the dynamic by announcing a federal Bitcoin reserve at the beginning of the year. The reserve is established using existing tokens in the possession of the government, which shows an increasing commitment of the public sector. This development gives the trend towards introducing Bitcoin in companies additional legitimacy.
No Comments