Markets
GameStop Could Start ‘Biggest Bitcoin Adoption Story of the Year’ With This Move, Trader Suggests – GameStop (NYSE:GME)
June 10, 2024 2:06 pm | 2 minutes reading
Heavily Followed Crypto Trader The Bitcoin Therapist proposed that GameStop (NYSE:GME) it could significantly benefit to adopt a Bitcoin (CRYPTO: Bitcoin) standard.
What happened: Bitcoin Therapist suggested that GameStop could raise more than $5 billion by issuing shares and converting that capital into Bitcoin at $70,000 per BTC. He highlighted that this would result in approximately 71,400 BTC, potentially making it the most significant Bitcoin adoption story of the year.
The trader emphasized that such a move could increase demand for GameStop shares and expand its Bitcoin holder base.
He further noted: “They are already an exceptionally overvalued company. They could continue to accumulate Bitcoin and issue debt/equity to acquire more Bitcoin.” This strategy, he said, could reinvent the GameStop brand and facilitate its transition to a more serious digital gaming and commerce platform.
The merchant concluded the post with a challenge to GameStop, “You move GameStop.”
Read too: GameStop Rollercoaster: Roaring Kitty Live Stream Countdown Sparks Investor Excitement
Why this matters: Bitcoin Therapist’s suggestion comes at a time when GameStop has been exploring several strategies to reinvent itself. The company has been in the spotlight for its volatile share price and efforts to move into digital and blockchain technologies.
GameStop’s potential to hold a significant amount of Bitcoin could position it uniquely in the market, differentiating it from other retailers.
During the release of its first quarter results, the company filed a prospectus supplement with the SEC regarding its at-the-market offering program, which allows for the sale of up to 75 million shares. Before this capital increase, it had sold 45 million shares in mid-May, raising approximately $933.4 million in gross proceeds.
What is the next: The influence of Bitcoin as an institutional asset class expected to be thoroughly explored at Benzinga’s next event Future of digital assets event on November 19th.
This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
SIGN UP TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you’ll also receive Benzinga’s latest morning update AND a free $30 gift card and more!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.