June 13, 2025

GameStop Slides While Bitdeer Gains as Bitcoin Bets Take Center Stage

5 min read

GameStop’s continued push into Bitcoin is drawing skepticism from investors as its stock price dropped more than 11% in after-hours trading following a $1.75 billion convertible note offering. The decline adds to the losses sustained since the company’s $513 million Bitcoin purchase in May. Meanwhile, Bitcoin miner Bitdeer posted a strong 18% increase in BTC production for the same month, supported by a rise in hashrate. GameStop Shares Tumble 11.7% After $1.75B Convertible Note Offering Hints at Further Bitcoin Moves GameStop shares plunged 11.66% in after-hours trading on Wednesday, extending a 5.31% decline during the regular session, following the company’s announcement of a $1.75 billion private offering of convertible senior notes due in 2032. The fresh financing plan adds to speculation that the gaming retailer may be preparing to buy even more Bitcoin after already deploying $513 million into the cryptocurrency last month. GME’s share price on June 11 (Source: Google Finance ) Although GameStop stopped short of confirming its intent to use the proceeds for additional Bitcoin purchases, it noted the funds would be allocated in line with its investment policy and could also support acquisitions. The vague language did little to calm jittery investors already reacting to the company’s disappointing Q1 revenue report from the day before. GameStop’s Bitcoin Bet and Mounting Debt On May 28, GameStop stunned markets by revealing that it had used a portion of its previously raised $1.5 billion to acquire 4,710 Bitcoin (BTC), becoming the 13th largest corporate Bitcoin holder globally, according to BitcoinTreasuries.NET. The investment, worth $513 million at the time of purchase, marked a radical pivot in the company’s strategy, aligning it with other high-profile Bitcoin treasurers like Strategy and Tesla. Top 13 public companies by Bitcoin holdings (Source: BitcoinTreasuries.NET ) Convertible senior notes — a hybrid financial instrument that combines features of debt and equity — have become a favored tool for companies betting big on Bitcoin. Like others before it, GameStop’s notes carry a 0% coupon and mature on June 15, 2032. The offering also includes an option for initial purchasers to acquire an additional $250 million in notes. Crucially, the notes can be converted into cash, GameStop shares, or a combination of both, leaving the door open for various capital restructuring options depending on how the company’s Bitcoin exposure and stock performance evolve. Market Reacts Poorly to Q1 Results and Bitcoin Strategy GameStop’s market performance hasn’t followed the script seen with other Bitcoin-buying firms. While Strategy and others saw stock surges after announcing their crypto plays, GME has trended in the opposite direction. Since confirming its Bitcoin acquisition on May 28, GameStop shares have dropped 18.5%, according to Google Finance. Wednesday’s sharp after-hours drop only exacerbates the trend, bringing the stock’s price back to levels not seen since March 25 — the day GameStop first revealed plans to invest in Bitcoin . Part of the negative momentum can also be attributed to the company’s Q1 earnings report, which showed a revenue decline of 17% year-over-year to $732.4 million, far short of analyst expectations. Despite posting a profit of $44.8 million for the quarter, reversing a $32.3 million loss from the same period last year, investors appeared more concerned with the top-line weakness and declining sales. Uncertainty Lingers as GameStop Straddles Gaming and Crypto GameStop’s pivot toward cryptocurrency appears to be part of a broader transformation strategy, but market participants remain divided on whether this gamble will ultimately pay off. The company has yet to make it clear how Bitcoin aligns with its core business of video games and consumer electronics, and its messaging around the use of convertible note proceeds remains opaque. The move also adds to the mounting debate over how much Bitcoin exposure is too much for public companies. With regulatory scrutiny of crypto still intensifying and Bitcoin’s price notoriously volatile, the risks of heavily Bitcoin-centric treasuries have become a growing concern among institutional investors. Nonetheless, GameStop’s decision to raise funds via convertible notes mirrors the playbook of crypto-forward firms — suggesting it could be setting the stage for a larger crypto integration in the near future. Whether that includes doubling down on Bitcoin or venturing into blockchain-related acquisitions remains to be seen. Bitdeer’s Bitcoin Production Surges 18% in May as US Miners Regain Momentum Amid Market Headwinds Meanwhile, Bitdeer Technologies Group (BTDR) announced Wednesday that it mined 196 Bitcoin in May, marking an 18% increase from the 166 BTC it produced in April. The growth came as the company expanded its computational power to 13.6 exahash per second (EH/s) from 12.4 EH/s, thanks to the deployment of new mining equipment. The announcement from Bitdeer comes at a pivotal time for the crypto mining industry, which has faced mounting challenges in recent months, including reduced block rewards, volatile energy prices, and market stress sparked by macroeconomic policy shifts. Nevertheless, Bitdeer’s results align with broader signs of resilience across the mining sector, as several publicly traded miners posted similar gains for the month. Bitdeer’s May performance is part of a trend: according to data from Farside Investors, other major miners—CleanSpark, Marathon Digital Holdings (MARA), Riot Platforms, and HIVE Blockchain Technologies—also increased their monthly BTC production in May. These upticks follow a difficult stretch for the mining industry after Bitcoin’s quadrennial halving event in April, which slashed block rewards from 6.25 BTC to 3.215 BTC per block. The sharp cut, designed to reduce the rate of Bitcoin issuance, has made mining less profitable overnight, especially for operators with outdated hardware or expensive power contracts. To stay operational, many miners were forced to sell larger portions of their Bitcoin reserves, adding sell pressure to markets already reeling from geopolitical disruptions. In April, Bitcoin’s price fell below $75,000 after President Trump’s aggressive tariff announcements roiled global investor sentiment, compounding the pressure on miners. Record Bitcoin Prices Offer Relief Still, a surge in Bitcoin’s price during May—peaking at an all-time high of $111,814, per CoinGecko—has brought renewed optimism. The benchmark cryptocurrency has since pulled back slightly but remains within 3% of its record, offering a vital buffer for mining operations struggling with narrower margins post-halving. Bitdeer’s improved performance, backed by its increased hashpower, signals that larger and better-capitalized miners are positioning themselves to thrive despite a more competitive environment. The Bitcoin network’s mining difficulty—a measure of how hard it is to find a valid block—has continued to rise throughout 2024 and 2025, further squeezing smaller miners. As more powerful rigs enter the network and global competition heats up, the barrier to profitability grows. Despite this, the United States remains the largest contributor to the global hashrate, accounting for the majority of the Bitcoin network’s mining power. That dominance may be further cemented under President Donald Trump’s second-term pro-mining stance, with promises to “mint all future Bitcoin in America.” Trump’s policies, including proposed tax incentives for domestic miners and federal grants for energy infrastructure supporting mining operations, are aimed at securing the US lead in digital asset infrastructure. Outlook: Consolidation and Institutional Scale Industry experts suggest the current environment will likely accelerate consolidation, with firms like Bitdeer, CleanSpark, and Marathon positioned to acquire distressed mining assets and expand operations. As mining shifts from a retail-dominated industry to one ruled by institutional-scale players, the focus will increasingly fall on access to cheap power, cutting-edge ASIC hardware, and geopolitical favorability. For now, Bitdeer’s May production figures offer a snapshot of optimism in a space often defined by volatility.

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