GameStop's Stock Plunges 24% After Bitcoin Treasury Plan Announcement

GameStop's stock (GME) experienced a significant drop on March 27, shedding nearly $3 billion in market capitalization after announcing plans to build a Bitcoin treasury. The stock plunged 24% following an initial 12% surge on March 26 after the company revealed its intention to use proceeds from a $1.3 billion convertible debt offering to acquire Bitcoin and stablecoins. According to Reuters, analysts suggest the lukewarm response reflects concerns that GameStop may be trying to distract investors from deeper issues with its business model. Bitcoin's price, hovering around $87,000 as of March 27, also faces bearish sentiment due to macroeconomic instability and trade wars.