GameStop (GME) shares fell more than 8% in intraday trading after the company announced plans to raise $1.3 billion to buy Bitcoin.
The company plans to raise the funds using convertible senior notes.
The news came a day after GameStop shares rose nearly 12%.
The increase came after the company released a statement saying its board had unanimously approved an investment policy update to add Bitcoin as a treasury reserve asset.
The planned Bitcoin investment was announced about a month after CNBC reported that GameStop was exploring cryptocurrency investment opportunities.
On February 8, a social media post by GameStop CEO Ryan Cohen sparked speculation about the company’s interest in cryptocurrencies.
Cohen posted a photo on the X platform with Strategy Analytics (MSTR) CEO Michael Saylor, who is known for linking his company to Bitcoin.
As of the February filing, the company now owns more than 447,000 Bitcoin tokens.
The strategy has proven successful for Saylor’s company, with its shares rising more than 84% last year in line with Bitcoin’s surge in price.
However, Wall Street strategists are still cautious about concluding that GameStop’s investment in Bitcoin will lead to a rise in the video game retailer’s stock price.
