GameStop shares plummet 15% as pivot to bitcoin alarms investors

Group 1 - GameStop's shares fell over 15% following the announcement of a $1.3 billion offering in 0% convertible bonds to finance its bitcoin acquisition, raising concerns about the timing and strategy for its retail business turnaround [1][4][6] - The company's plan to hold bitcoin as a treasury reserve asset initially generated excitement among retail traders, but the announcement of closing a significant number of stores indicated ongoing struggles in its retail operations [2][6] - Analysts question the viability of GameStop's business model, particularly the timing of its bitcoin investment, as the cryptocurrency has seen a 27% increase since the November presidential election but remains below record highs due to economic uncertainties [3][7] Group 2 - The overall sentiment in the crypto market has not improved significantly due to GameStop's actions, contributing to the decline in its stock price, which has dropped over 23% this year [6] - The debt offering to fund bitcoin purchases is compared to strategies employed by major bitcoin holders, suggesting a shift in GameStop's operational focus [5]