GameStop (GME) Sinks 20% Amid Bitcoin Holdings and Fundraising Plan

GameStop (GME) shares plunged nearly 20% in 24 hours, trading at $22.85 as of Thursday morning (UTC) —marking a steep drop.

GameStop (NYSE:GME) shares sank nearly 21% in 24 hours, trading at $22.85 by 07:18 ET Thursday.

The video game retailer’s stock has come under pressure following its recent Bitcoin (BTC) holdings and fundraising plan.

What Happened: GameStop announced a capital raise of $1.75 billion through a private offering of senior convertible notes earlier this week. The move is aimed at strengthening the company’s balance sheet amid market volatility and macroeconomic uncertainty.

The company disclosed that it acquired 4,710 BTC for approximately $513 million, placing it among the top 15 public Bitcoin holders. The move, which was made in the second quarter of 2025, sparked interest in whether GameStop might continue expanding its Bitcoin reserves.

However, management didn’t specify in its earnings release how the new funds would be used, either to expand Bitcoin holdings or support core operations. This lack of clarity appears to have rattled the market.

Shares dropped 6% immediately after the announcement, and continued selling pressure has pushed the stock down further. The Bitcoin narrative, which often acts as a bullish catalyst for companies adopting crypto strategies, failed to provide support for GameStop in this case.

The Q1 earnings miss also contributed to the bearish sentiment. GameStop reported a 17% decline in net sales to $732.4 million, compared to last year’s $881.8 million, missing analyst estimates of $746 million, according to Benzinga's consensus estimates.

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The company reported a loss of $0.44 per share, excluding one-time items, compared to the average analyst estimate of a loss of $0.31 per share. In the same period last year, the company reported earnings of $0.33 per share.

The company’s executives will host a conference call at 4:30 p.m. ET on Thursday to discuss the results in more detail.

The video game retailer’s stock is down 33% year-to-date.

Price Action: GameStop shares traded down 14.98% to $22.60 on Thursday morning, according to Benzinga Pro. The stock has a 52-week high of $64.77 and a 52-week low of $12.94.output: