Crypto trader The Bitcoin Therapist suggests GameStop GME could revolutionize digital commerce by adopting a Bitcoin (BTC/USD) standard. This proposal involves issuing shares to raise over $5 billion, converting the capital into Bitcoin at $70,000 per BTC, and potentially acquiring about 71,400 BTC.
Financial Strategy and Implications
The Bitcoin Therapist emphasized this strategy could boost demand for GameStop’s stock and attract a broader Bitcoin holder base. He stated, “They are already an exceptionally overvalued company. They could continue to accrue Bitcoin and issue debt/shares to acquire more Bitcoin.”
He believes this move could reinvent GameStop’s brand, transitioning it into a more serious digital gaming and commerce platform. He challenged the company with, “Your move, GameStop.”
Context and Potential Impact
GameStop seeks to reinvent itself amid stock price volatility and a shift toward digital and blockchain technologies. Holding a consequential amount of Bitcoin could uniquely position GameStop in the market, setting it apart from other retailers.
In their Q1 earnings release, GameStop filed a prospectus supplement with the SEC for its at-the-market offering program, allowing the sale of up to 75 million shares. Before this, the company sold 45 million shares in mid-May, raising approximately $933.4 million in gross proceeds.
Alternative Investments and Market Diversification
Investing in Bitcoin and other alternative assets, such as art, trading cards, mortgages, or luxury cars, is becoming a popular way to diversify portfolios. This trend highlights the growing interest in digital assets and their potential financial freedom.
Industry leaders and investors will have the opportunity to explore these developments at Benzinga’s Future of Digital Assets event on November 19 in New York City.
The event will feature networking opportunities, with 1,000 capital markets leaders and 4,000 one-on-one meetings with decision-makers, investors, and strategists. Attendees can also join executive roundtables and speed-dating networking sessions to build connections that could shape the future of their businesses.
GameStop logo. Photo via Shutterstock.
