GAMESTOP shares the tank as the retailer reveals the convertible debt offer, the negotiating card plan

GameStop The actions slipped Thursday after the video game retailer announced plans for convertible tickets of $ 1.75 billion offering a potentially funding its new Bitcoin purchasing strategy. The company also said that it would focus on the exchange cards market.

The retailer said that he intended to use the net product offer for the company’s general purposes, “including investments in accordance with GameStop’s investment policy and potential acquisitions”.

Part of the investment policy is to add cryptocurrencies to its balance sheet. Last month, GameStop bought 4,710 bitcoins, worth more than half a billion dollars.

The action ended Thursday down 22.5%on Thursday.

GameStop follows in the footsteps of the microstrategy software company, now known as the strategy, which has bought billions of dollars in Bitcoin in recent years to become the largest holder of the flagship cryptocurrency. This decision caused a rapid increase, although volatile, for the actions of the strategy.

The strategy has issued various forms of securities, including convertible debt to finance its Bitcoin purchases.

The CEO Ryan Cohen recently said that Gamesop’s decision to buy Bitcoin was motivated by macro as a digital part, with its fixed supply and decentralized nature, could serve as protection against certain risks.

The brick and mortar retailer declared on Tuesday a drop in budgetary income from the first quarter while the demand for online games increased. Its turnover dropped by 17% from one year to the next to 732.4 million dollars.

Actions dropped 5% Wednesday after these results. Wall Street seems uncertain that the video game retailer can imitate the success of microstrategy.

Wedbush analyst Michael Pachter, reiterated his underperforming note on Gamesop on Wednesday, saying that the stock even had always capitalized on “larger” complainants arranged to pay more than twice its asset value for its shares. Wedbush analyst believes that Bitcoin’s purchasing strategy does not make sense because the company, already trading at 2.4 times in cash, should not lead an even higher bonus by converting more money into crypto.

In addition, Cohen told the company’s annual meeting on Thursday that Gamesop focuses on commercial cards as “a natural extension” of its existing activities, according to a transcription on Fostset. He said that this market is integrated into physical retail sale and has a “high margin potential”.

Revenues from Gamestop collectibles in the first quarter have jumped 54% over the other, driven by the growing demand for cards to exchange – in particular the Pokémon trading card game, the company said.

Data Tracker Circana said her omnibus March survey revealed that 19% of adults had bought Pokémon trading cards for themselves in the last six months.

The majority collect cards as a hobby or for decoration, said Circana. The company added that adults have contributed to stimulating toy sales, with the demographic accounting of the highest expenses among all age groups in the first quarter.

–Christina Cheddar Berk of CNBC contributed the reports.

Correction: Gamesop actions dropped 5% on Wednesday. An earlier version has destroyed the percentage.