GameStop Crypto Skyrockets 500% After Blockbuster $1.75B Investment News
A cryptocurrency named after GameStop Corp. GME -15.9% Get Free Report surged to triple-digit gains on Wednesday following the video game retailer’s announcement of plans to raise over a billion dollars for investment purposes.
What transpired: The GameStop Coin (GME) based on BNB Chain skyrocketed by an astonishing 532% in the past day, going against the trend of general market correction. The memecoin saw a notable increase in trader interest, with volume rising by 53%.
GME surpassed the performance of established cryptocurrencies such as Bitcoin BTC/USD -2.00% + Free Alerts and Dogecoin DOGE/USD -4.00% + Free Alerts , which declined by 1.21% and 2.30%, respectively
Be aware that the token has no connection to GameStop; it simply aims to take advantage of the excitement around the meme stock.
Why It Matters: The explosive rally followed GameStop’s announcement of a proposed private offering of $1.75 billion in 0.00% convertible senior notes aimed at institutional buyers.
The company announced its intention to invest the net proceeds from the offering in a manner “consistent” with its investment policy.
It is worth mentioning that GameStop implemented a Bitcoin treasury strategy earlier this year and conducted its initial acquisitions—approximately 4,700 BTC for $512.6 million—last month.
On Tuesday, GameStop announced its first-quarter revenue of $732.4 million, which fell short of analysts’ expectations of $754.24 million. The firm announced adjusted earnings of 17 cents per share, surpassing analysts’ forecasts of four cents per share
Price Action: CoinMarketCap reports that at the time of writing, GME was trading at $0.000004406, reflecting a 0.75% decrease over the past 24 hours.
According to data from Benzinga Pro, GME shares fell 11.2% in after-hours trading following a 5.31% decline during Wednesday’s regular session, closing at $28.55.
As of this writing, GME stock had a high Growth score but fell short in Momentum and Value metrics. If you want to populate your portfolio with comparable high-growth stocks, check out Benzinga Edge Stock Rankings for guidance.
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