Gamestop’s radical change in the investment strategy has aroused a significant impact in the market. The new investment plan announced by the company after the US US $ 1.3 billion convertible debt sales led to a decrease in stock values exceeding 22 %. It is questioned why the orientation of the crypto money market among investors is so late and uncertain. Experts emphasize that there are many questions about the future of the basic business model.
Crypto deposit has created uncertainty
The new strategy, which is included in the 2024 annual report of Gamestop, has shown that the company plans to add certain crypto currencies to the investment portfolio. In this unanimous amendment, which was adopted by the Board of Directors on 18 March, it drew attention to the fact that no upper limit has been determined for the amount of assets to be invested. It is also stated that the company has the right to sell these assets in the future. While these statements create confusion among investors, the fact that long -term goals are not clear increased concerns.
Investment analysts did not meet this strategy very positively. Bret Kenwell from Etoro interpreted the company’s turning to the crypto money market as a “risky timing”. According to Kenwell, if the Gamestop was to choose this path, he had to do it long before. Uncertainties about the late announcement of the strategy and the future of the retail business model damage investor confidence. “Bitcoin $87,233.21 If it is to be taken to the center, what will happen to the rest? ” The question summarizes the general atmosphere of the market.
The market reaction was harsh
Following the investment decision, Gamestop shares experienced the hardest decline of the last year with a depreciation of more than 22 %. The increase in risks in retail operations of the company pushed investors to be cautious. This decision, which initially aroused excitement among small investors, led to question marks in a short time. In particular, the details of the strategy remained uncertain, was considered a risky move by the market.
Ryan Cohen, CEO of the company, previously made the mysterious shares on social media led to the growth of discussions. His sharing with the note “Letter Received” (letter received) prepared the ground for speculation among investors. Immediately after this sharing, the letter that Matt CEO, CEO of Strive Assive Management, wrote to the company and argued that Gamestop should direct the cash reserves to digital assets. Developments suggested that Gamestop’s decision to turn to the crypto currency area may have been shaped by external pressures.
Experts say that Gamestop is difficult for him to make such alternative investments while preserving the basic business model. While the new strategy will affect the company’s future operations, investors closely follow how to manage risk management.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
