In order to fund its Bitcoin purchase, GameStop will attempt to raise $1.3 billion through the Convertible Senior Notes offering. The notes will mature in 2030 at which they will be redeemable in cash, shares of GameStop’s Class A common stock, or a combination of both.

Bitcoin, the world’s most valuable cryptocurrency, reached an all-time high price of $109,026.02 per coin back in January. It has since lost 18% of its value and has been hovering between $84K and $87K in recent weeks.

GameStop is attempting a strategy made famous by Michael Saylor’s MicroStrategy, which began investing in Bitcoin in 2020 as a hedge against inflation. Since then, MicroStrategy’s stock soared by close to 3,000%. A number of other companies, including electric vehicle maker Tesla and healthcare provider Semler Scientific, were inspired to follow the same blueprint in recent years.

GameStop’s stock had a brief jump after the announcement of the Bitcoin purchase plan, climbing by 15% at one point on Wednesday and closing at $28.36 per share. It later dipped in the after-hours trading, going down by 7.62%.

The post GameStop Announces Intention to Invest in Bitcoin appeared first on theprimarymarket.com.

Back in 2018, Cohen, who is also a founder of an online retailer for pet food and pet products, acquired more than 562,000 Wells Fargo voting shares, approximately worth around $100 million. While Cohen was required to report the acquisition to federal antitrust agencies under the Hart-Scott-Rodino (HSR) Act due to the size of the stake, he failed to do so until 2021.

“Cohen’s acquisition of Wells Fargo voting securities was not exempt under the Investment-Only Exemption of the HSR Act, even though his holding represented less than 10 percent of the outstanding voting securities of Wells Fargo,” FTC said in a press release.

According to FTC, Cohen actively tried to get involved in Wells Fargo’s business decisions, corresponding with the company’s leadership and making suggestions for improvements. He also actively pursued a board seat but failed in his attempts.

In order to settle the charges brought against him by FTC, Cohen agreed to pay a civil penalty of $985,320.

Cohen and his investment vehicle RC Ventures were recently also the subject of a lawsuit by Bed Bath & Beyond. The suit, which accused Cohen of engaging in insider trading to make a $47 million profit, was dismissed in June.

The post GameStop CEO Ryan Cohen to Pay Fine of Nearly $1 Million for Failing to Disclose Wells Fargo Stake appeared first on theprimarymarket.com.

GameStop’s revenue came at $798 million, missing the analysts’ estimates of $896 million. It also marked a decline of 31.4% compared to revenue of $1.164 billion in the same period last year. The drop in sales is attributed to more consumers opting to make their video game purchases online.

 However, GameStop also recorded a net income of $14.8 million, amounting to $0.04 in adjusted earnings per share, an improvement from a $2.8 million or $0.01 a share loss from a year ago. The analysts expected a loss of $0.09 per share.

Back in July, GameStop raised more than $2 billion from stock sales, which the company intended to use on acquisitions and mergers. Now, it will sell another 20 million shares, saying the proceeds will go toward “general corporate purposes.”

Additionally, GameStop intends to close some of its underperforming stores and is in the process of identifying such locations.

GameStop’s shares have dropped more than 10% after the Q2 report release. The company’s stock is 40.67% up year-to-date but has lost more than 50% of its value since peaking at $48.75 per share in May.

The post GameStop Reports Declining Sales, Announces 20 Million Shares Offering appeared first on theprimarymarket.com.

GameStop shares jumped around 28% last week after a financial influencer Keith Gill, aka “Roaring Kitty,” revealed he made a significant investment of $116 million in the company’s stock. Gill was one of the main figures in the short squeeze in January 2021 that caused GameStop shares to balloon to around $500 per share.

However, the company’s stock has nosedived after a quarterly report showed it generated $881.8 million in net sales, marking a 29% decrease from $1.237 billion in the same period last year. Wall Street analysts expected the net sales to come in the range of $900 million to $1.09 billion. It also recorded an adjusted loss of $0.12 per share compared to an expected $0.09 loss per share.

Additionally, GameStop announced it will offer 75 million shares at the market price. The company made a similar move in May when it generated $933.4 million from selling 45 million shares.

The trading of GameStop shares has been halted several times on Friday due to high volatility. The stock dropped to $28.22 per share compared to Thursday’s peak price of $61.27.

The post GameStop Tumbles 40% Amid Big Stock Sale Announcement appeared first on theprimarymarket.com.

Gill was in the midst of a GameStop short squeeze in January 2021, which saw the retailer’s stock jump from $17.25 at the beginning of the month to more than $500 per share by the end of the month. It is estimated that his initial investment of $53,000 in GameStop stock ended up being worth $200 million at one point.

Now, Gill is once again betting on GameStop, revealing on Reddit that he made a $116 million investment in the company’s shares. His post indicates that he now holds 5 million shares in GameStop, which represents around 1.8% of publicly available stock.

“Keith Gill is putting his money where his tweets are, and some investors are clearly following his lead and rekindling interest in meme stocks,” said Ben Laidler, global markets strategist at digital brokerage eToro, told Yahoo Finance. “This is having a disproportionate share price impact given the short position in the stock combined with its relatively small market capitalization.”

GameStop closed at $23.10 per share on Friday and has been trading at around $30 per share on Monday. The company’s stock is currently 79.60% up year-to-date.

The post GameStop Stock Soars 28.15% After Stock Influencer’s Bet appeared first on theprimarymarket.com.

Expenses fell by 21.2% to $357.1 million, largely resulting from lower labor costs as well as consulting services and marketing. Reduced labor costs were largely the result of GameStop’s exit from its operations in Austria, Ireland, and Switzerland.

Still, GameStop’s reduced expenses did little to quell worries about its declining revenue, particularly given the rising trends in video game purchases. “An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately,” Wedbush Securities analyst Michael Pachter observed, Pachter recommended that GameStop management think of new ways to drive store traffic.

The post GameStop Stock Plunges Following Slump in Revenue appeared first on theprimarymarket.com.

GameStop is expected to release its quarterly earnings report next week. Investors are betting on the impact of the company’s new CEO, Ryan Cohen, and hoping a surge of more than 50% with a $20 call option on December 8 being traded more than 20,000 times by Wednesday.

Meme stocks have rebounded lately amid expectations that the Federal Reserve is done with raising interest rates, which prompted traders to circle back to speculative investments.

“Speculation is back … and GameStop is ground zero for speculation,” said Steve Sosnick, chief strategist at Interactive Brokers, via Reuters.

GameStop stock has been down 38% year to date and dropped to $12.12 per share earlier in November. This has been their lowest point since February 2021 and more than 80% down from an all-time high of $81.25 in early 2021.

After a recent CEO change and a resurgence of interest in meme stock, GameStop shares experienced a steady rise. The stock started the week at $12.21 on Monday before climbing all the way to $16.25 close on Wednesday.

The post GameStop Shares Surge More Than 35% Ahead of the Earnings Report appeared first on theprimarymarket.com.

GameStop has been struggling to keep its head above water in recent years after failing to adapt to changes in customers’ preferences for online marketplaces. The company believed a venture into the crypto realm would help them return to relevance, but the strategy didn’t bring the expected success.

The idea of GameStop Wallet, which was launched back in May, was to enable users to store, send, receive, and use crypto and non-fungible tokens (NFTs). The company also launched an NFT marketplace a few months later, hoping to encourage wider adoption of the wallet.

GameStop didn’t provide much detail about its decision to pull the plug on GameStop Wallet. The announcement was made via a brief message posted on the official website that contained some basic guidelines for wallet owners.

“Due to the regulatory uncertainty of the crypto space, GameStop has decided to remove its iOS and Chrome Extension wallets from the market on November 1, 2023,” the company stated. “We advise that all customers ensure that they have access to their Secret Passphrase by October 1, 2023. Any customer with access to their Secret Passphrase has the ability to recover their account in any compatible wallet.”

The post GameStop is Shutting Down Its Crypto Wallet appeared first on theprimarymarket.com.

The video game and electronics retailer had a slight dip in net sales compared to the same period last year, going from $2.25 billion to $2.23 billion. However, the profits came at $48.2 million compared to a $147.5 million loss the year before.

GameStop’s return to profitability has a lot to do with the company’s efforts to cut costs, which is something they intend to continue doing in the future.

“Looking ahead, we’re aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,” CEO Matt Furlong said during an earnings call on Tuesday.

However, while the cost-cutting methods might be working for the company at the moment, most analysts agree this isn’t sustainable in the long run. The overall sentiment is that the company will have to find ways to remain profitable by actually increasing its sales.

After closing at $17.64 per share on Tuesday, the GameStop stock surged to the $26.76 mark early on Wednesday. This represents their highest price since late 2022. The company’s shares later stabilized at around $24 later in the day.

The post GameStop Has First Quarterly Profit in 2 Years, Sees Huge Stock Jump appeared first on theprimarymarket.com.

This decision was enacted in the form of a filing that was dated for August 17—so even though the plan is in motion, the official transaction hasn’t actually come to pass yet. However, the motion itself has made a major wave throughout the finance world nevertheless.

RC Ventures, a company owned by Cohen, currently holds a large 11.8% stake in Bed Bath & Beyond, but clearly, he felt like this percentage was way too high. He’s not even interested in holding on to a smidgen of the stake in the struggling retailer, which illustrates pretty strongly how little faith he has in the company.

Strangely enough, Bed Bath & Beyond stock had actually gone up an impressive 350% in August, so it’s not as though they’re completely losing their way. However, Cohen and his associates clearly weren’t to be swayed by this recent surge, and confidently feel as though ties need to be severed. In any case, financial analysts will have their eyes fixated on how Bed Bath & Beyond bounces back from this.

The post GameStop Chairman Sells Bed Bath & Beyond Stake appeared first on theprimarymarket.com.

In order to fund its Bitcoin purchase, GameStop will attempt to raise $1.3 billion through the Convertible Senior Notes offering. The notes will mature in 2030 at which they will be redeemable in cash, shares of GameStop’s Class A common stock, or a combination of both.

Bitcoin, the world’s most valuable cryptocurrency, reached an all-time high price of $109,026.02 per coin back in January. It has since lost 18% of its value and has been hovering between $84K and $87K in recent weeks.

GameStop is attempting a strategy made famous by Michael Saylor’s MicroStrategy, which began investing in Bitcoin in 2020 as a hedge against inflation. Since then, MicroStrategy’s stock soared by close to 3,000%. A number of other companies, including electric vehicle maker Tesla and healthcare provider Semler Scientific, were inspired to follow the same blueprint in recent years.

GameStop’s stock had a brief jump after the announcement of the Bitcoin purchase plan, climbing by 15% at one point on Wednesday and closing at $28.36 per share. It later dipped in the after-hours trading, going down by 7.62%.

The post GameStop Announces Intention to Invest in Bitcoin appeared first on theprimarymarket.com.

Back in 2018, Cohen, who is also a founder of an online retailer for pet food and pet products, acquired more than 562,000 Wells Fargo voting shares, approximately worth around $100 million. While Cohen was required to report the acquisition to federal antitrust agencies under the Hart-Scott-Rodino (HSR) Act due to the size of the stake, he failed to do so until 2021.

“Cohen’s acquisition of Wells Fargo voting securities was not exempt under the Investment-Only Exemption of the HSR Act, even though his holding represented less than 10 percent of the outstanding voting securities of Wells Fargo,” FTC said in a press release.

According to FTC, Cohen actively tried to get involved in Wells Fargo’s business decisions, corresponding with the company’s leadership and making suggestions for improvements. He also actively pursued a board seat but failed in his attempts.

In order to settle the charges brought against him by FTC, Cohen agreed to pay a civil penalty of $985,320.

Cohen and his investment vehicle RC Ventures were recently also the subject of a lawsuit by Bed Bath & Beyond. The suit, which accused Cohen of engaging in insider trading to make a $47 million profit, was dismissed in June.

The post GameStop CEO Ryan Cohen to Pay Fine of Nearly $1 Million for Failing to Disclose Wells Fargo Stake appeared first on theprimarymarket.com.

GameStop’s revenue came at $798 million, missing the analysts’ estimates of $896 million. It also marked a decline of 31.4% compared to revenue of $1.164 billion in the same period last year. The drop in sales is attributed to more consumers opting to make their video game purchases online.

 However, GameStop also recorded a net income of $14.8 million, amounting to $0.04 in adjusted earnings per share, an improvement from a $2.8 million or $0.01 a share loss from a year ago. The analysts expected a loss of $0.09 per share.

Back in July, GameStop raised more than $2 billion from stock sales, which the company intended to use on acquisitions and mergers. Now, it will sell another 20 million shares, saying the proceeds will go toward “general corporate purposes.”

Additionally, GameStop intends to close some of its underperforming stores and is in the process of identifying such locations.

GameStop’s shares have dropped more than 10% after the Q2 report release. The company’s stock is 40.67% up year-to-date but has lost more than 50% of its value since peaking at $48.75 per share in May.

The post GameStop Reports Declining Sales, Announces 20 Million Shares Offering appeared first on theprimarymarket.com.

GameStop shares jumped around 28% last week after a financial influencer Keith Gill, aka “Roaring Kitty,” revealed he made a significant investment of $116 million in the company’s stock. Gill was one of the main figures in the short squeeze in January 2021 that caused GameStop shares to balloon to around $500 per share.

However, the company’s stock has nosedived after a quarterly report showed it generated $881.8 million in net sales, marking a 29% decrease from $1.237 billion in the same period last year. Wall Street analysts expected the net sales to come in the range of $900 million to $1.09 billion. It also recorded an adjusted loss of $0.12 per share compared to an expected $0.09 loss per share.

Additionally, GameStop announced it will offer 75 million shares at the market price. The company made a similar move in May when it generated $933.4 million from selling 45 million shares.

The trading of GameStop shares has been halted several times on Friday due to high volatility. The stock dropped to $28.22 per share compared to Thursday’s peak price of $61.27.

The post GameStop Tumbles 40% Amid Big Stock Sale Announcement appeared first on theprimarymarket.com.

Gill was in the midst of a GameStop short squeeze in January 2021, which saw the retailer’s stock jump from $17.25 at the beginning of the month to more than $500 per share by the end of the month. It is estimated that his initial investment of $53,000 in GameStop stock ended up being worth $200 million at one point.

Now, Gill is once again betting on GameStop, revealing on Reddit that he made a $116 million investment in the company’s shares. His post indicates that he now holds 5 million shares in GameStop, which represents around 1.8% of publicly available stock.

“Keith Gill is putting his money where his tweets are, and some investors are clearly following his lead and rekindling interest in meme stocks,” said Ben Laidler, global markets strategist at digital brokerage eToro, told Yahoo Finance. “This is having a disproportionate share price impact given the short position in the stock combined with its relatively small market capitalization.”

GameStop closed at $23.10 per share on Friday and has been trading at around $30 per share on Monday. The company’s stock is currently 79.60% up year-to-date.

The post GameStop Stock Soars 28.15% After Stock Influencer’s Bet appeared first on theprimarymarket.com.

Expenses fell by 21.2% to $357.1 million, largely resulting from lower labor costs as well as consulting services and marketing. Reduced labor costs were largely the result of GameStop’s exit from its operations in Austria, Ireland, and Switzerland.

Still, GameStop’s reduced expenses did little to quell worries about its declining revenue, particularly given the rising trends in video game purchases. “An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately,” Wedbush Securities analyst Michael Pachter observed, Pachter recommended that GameStop management think of new ways to drive store traffic.

The post GameStop Stock Plunges Following Slump in Revenue appeared first on theprimarymarket.com.

GameStop is expected to release its quarterly earnings report next week. Investors are betting on the impact of the company’s new CEO, Ryan Cohen, and hoping a surge of more than 50% with a $20 call option on December 8 being traded more than 20,000 times by Wednesday.

Meme stocks have rebounded lately amid expectations that the Federal Reserve is done with raising interest rates, which prompted traders to circle back to speculative investments.

“Speculation is back … and GameStop is ground zero for speculation,” said Steve Sosnick, chief strategist at Interactive Brokers, via Reuters.

GameStop stock has been down 38% year to date and dropped to $12.12 per share earlier in November. This has been their lowest point since February 2021 and more than 80% down from an all-time high of $81.25 in early 2021.

After a recent CEO change and a resurgence of interest in meme stock, GameStop shares experienced a steady rise. The stock started the week at $12.21 on Monday before climbing all the way to $16.25 close on Wednesday.

The post GameStop Shares Surge More Than 35% Ahead of the Earnings Report appeared first on theprimarymarket.com.

GameStop has been struggling to keep its head above water in recent years after failing to adapt to changes in customers’ preferences for online marketplaces. The company believed a venture into the crypto realm would help them return to relevance, but the strategy didn’t bring the expected success.

The idea of GameStop Wallet, which was launched back in May, was to enable users to store, send, receive, and use crypto and non-fungible tokens (NFTs). The company also launched an NFT marketplace a few months later, hoping to encourage wider adoption of the wallet.

GameStop didn’t provide much detail about its decision to pull the plug on GameStop Wallet. The announcement was made via a brief message posted on the official website that contained some basic guidelines for wallet owners.

“Due to the regulatory uncertainty of the crypto space, GameStop has decided to remove its iOS and Chrome Extension wallets from the market on November 1, 2023,” the company stated. “We advise that all customers ensure that they have access to their Secret Passphrase by October 1, 2023. Any customer with access to their Secret Passphrase has the ability to recover their account in any compatible wallet.”

The post GameStop is Shutting Down Its Crypto Wallet appeared first on theprimarymarket.com.

The video game and electronics retailer had a slight dip in net sales compared to the same period last year, going from $2.25 billion to $2.23 billion. However, the profits came at $48.2 million compared to a $147.5 million loss the year before.

GameStop’s return to profitability has a lot to do with the company’s efforts to cut costs, which is something they intend to continue doing in the future.

“Looking ahead, we’re aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,” CEO Matt Furlong said during an earnings call on Tuesday.

However, while the cost-cutting methods might be working for the company at the moment, most analysts agree this isn’t sustainable in the long run. The overall sentiment is that the company will have to find ways to remain profitable by actually increasing its sales.

After closing at $17.64 per share on Tuesday, the GameStop stock surged to the $26.76 mark early on Wednesday. This represents their highest price since late 2022. The company’s shares later stabilized at around $24 later in the day.

The post GameStop Has First Quarterly Profit in 2 Years, Sees Huge Stock Jump appeared first on theprimarymarket.com.

This decision was enacted in the form of a filing that was dated for August 17—so even though the plan is in motion, the official transaction hasn’t actually come to pass yet. However, the motion itself has made a major wave throughout the finance world nevertheless.

RC Ventures, a company owned by Cohen, currently holds a large 11.8% stake in Bed Bath & Beyond, but clearly, he felt like this percentage was way too high. He’s not even interested in holding on to a smidgen of the stake in the struggling retailer, which illustrates pretty strongly how little faith he has in the company.

Strangely enough, Bed Bath & Beyond stock had actually gone up an impressive 350% in August, so it’s not as though they’re completely losing their way. However, Cohen and his associates clearly weren’t to be swayed by this recent surge, and confidently feel as though ties need to be severed. In any case, financial analysts will have their eyes fixated on how Bed Bath & Beyond bounces back from this.

The post GameStop Chairman Sells Bed Bath & Beyond Stake appeared first on theprimarymarket.com.