GameStop shares fell 23% after announcing a $1.75 billion convertible notes offering to help fund its bitcoin investment strategy and shift focus to trading cards.

The company recently bought 4,710 bitcoins and plans further crypto investments.

CEO Ryan Cohen cited bitcoin’s fixed supply as a hedge against macro risks.

GameStop also reported a 17% revenue decline in Q1, fueling skepticism about its strategy.

Analysts remain doubtful, comparing the move to MicroStrategy’s volatile crypto approach, CNBC has reported.

Meanwhile, GameStop is leaning into trading cards, which saw a 54% revenue increase, driven by strong demand for Pokémon cards.

Written by B.C. Begley