GameStop-Themed Meme Coin (GME) Soars 532% After the Video Game Retailer Announces $1.75B Notes Offering

A cryptocurrency named after GameStop Corp. GME blasted to triple-digit gains Wednesday after the video game retailer announced plans to raise over a billion dollars for investment purposes.

A cryptocurrency named after GameStop Corp. (NYSE:GME) is heating up with triple-digit gains on Wednesday after the video game retailer announced plans to raise over a billion dollars for investment purposes.

What Happened: BNB Chain BNB/USD-based GameStop Coin (GME) soared a whopping 532% in the last 24 hours, contrasting sharply with the broader market correction. The memecoin also saw a significant surge in trader interest, with volume increasing by 53%.

The token, which is unrelated to GameSolid and simply seeks to capitalize on the hype surrounding the meme stock, outperformed blue-chip cryptocurrencies like Bitcoin BTC/USD and Dogecoin DOGE/USD which fell 1.21% and 2.30%, respectively.

The explosive rally follows GameStop’s announcement of a proposed private offering of $1.75 billion of 0.00% convertible senior notes to institutional buyers.

The company said it intends to use the net proceeds from the offering for making investments "consistent" with its investment policy.

Earlier this year, GameStop adopted a Bitcoin treasury strategy and made its first purchases, amounting to about 4,700 BTC for $512.6 million, last month.

GameStop reported first-quarter revenue of $732.4 million on Tuesday, which missed analyst estimates of $754.24 million. The company reported adjusted earnings of 17 cents per share, exceeding analyst estimates of four cents per share.

Price Action: At the time of writing, GME was exchanging hands at $0.000004406 down 0.75% in the last 24 hours according to CoinMarketCap.

Shares of GME plunged 11.2% in after-hours trading after closing 5.31% lower at $28.55 during Wednesday’s regular trading session, according to data from Benzinga Pro.

GME stock recorded a high Growth score but lagged in Momentum and Value metrics as of this writing. If you want to fill your portfolio with similar high-growth stocks, visit Benzinga Edge Stock Rankings for reference.

Investing in meme coins is highly speculative and involves significant risk. Meme coins often lack intrinsic value and are driven by market sentiment, social media trends, and speculative trading.