Heavily-followed crypto trader The Bitcoin Therapist proposed that GameStop (NYSE:GME) could significantly benefit from adopting a Bitcoin (CRYPTO: BTC) standard.
What Happened: The Bitcoin Therapist suggested that GameStop could raise over $5 billion by issuing shares and converting this capital into Bitcoin at $70,000 per BTC. He outlined that this would result in approximately 71,400 BTC, potentially making it the most significant Bitcoin adoption story of the year.
The trader emphasized that such a move could increase demand for GameStop's stock and expand its base of Bitcoin holders.
He further noted, "They are already an exceptionally overvalued company. They could continue to accrue Bitcoin and issue debt/shares to acquire more Bitcoin." This strategy, according to him, could reinvent GameStop's brand and facilitate its transition into a more serious digital gaming and commerce platform.
The trader concluded the post with a challenge to GameStop, "Your move GameStop."
Also Read: GameStop's Roller Coaster: Roaring Kitty's Live Stream Countdown Ignites Investor Excitement
Why It Matters: Bitcoin Therapist's suggestion comes at a time when GameStop has been exploring various strategies to reinvent itself. The company has been in the spotlight for its volatile stock price and efforts to pivot towards digital and blockchain technologies.
The potential for GameStop to hold a significant amount of Bitcoin could position it uniquely in the market, differentiating it from other retailers.
During the Q1 earnings release, the company filed a prospectus supplement with the SEC regarding its at-the-market offering program, which allows the sale of up to 75 million shares. Before this capital raise, it had sold 45 million shares in mid-May raising around about $933.4 million in gross proceeds.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
Comment(1)
Why not they start mining also?????
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