Why Shares of GameStop Are Tanking Today
Shares of the video game retailer (NYSE: GME) had tanked roughly 19%, as of 10:18 a.m. ET today. The company announced plans to issue $1.75 billion in convertible notes for "general corporate purposes, including making investments in a manner consistent with GameStop's Investment Policy and potential acquisitions."
While GameStop in its press release did not specifically say that it would use the proceeds of the offering to buy more Bitcoin, the world's largest cryptocurrency, many suspect this is the plan and GameStop's investment policy now includes purchasing more Bitcoin.
Image source: Getty Images.
Source Fool.com
Gamestop Corp. Stock
€19.54
2.110%
Our community is currently low on Gamestop Corp. with 1 Buy predictions and 5 Sell predictions.
A target price of 9 € results in a potential of -53.93% which would mean heavy losses compared to the current price of 19.54 € for Gamestop Corp..
