GameStop Shares Drop 7% After $1.3B Bitcoin Debt Plan

GameStop's stock price dropped over 7% in premarket trading, following a nearly 12% gain after the company announced plans to raise $1.3 billion through the sale of convertible senior notes to purchase Bitcoin as a treasury reserve asset. Analysts expressed skepticism about the success of this strategy, comparing it to MicroStrategy's approach, given GameStop's high market valuation relative to its cash reserves. Despite the stock's decline, GameStop's decision to adopt Bitcoin aligns with a broader trend of institutional interest in cryptocurrencies, although Bitcoin continues to struggle below the $100,000 mark. The cryptocurrency market faced mixed developments, with some altcoins experiencing declines while regulatory discussions by the SEC are set to continue. Additionally, a decentralized exchange delisted certain tokens due to suspicious market activity, raising governance questions in the crypto space. Overall, GameStop's pivot into Bitcoin reflects ongoing volatility and uncertainty in both the stock and cryptocurrency markets.