Mrzorro
03-27

GameStop Pole-Vaults Over Palantir, Apple to Top 3 Stock Option


$GameStop(GME)$   pole-vaulted over $Palantir Technologies Inc.(PLTR)$   and $Apple(AAPL)$   to become Wednesday’s third most active stock option after the struggling video game retailer said its board approved a plan to add Bitcoin as a treasury reserve asset. 

The video game retailer that reported a sixth straight quarterly revenue decline Tuesday joined other companies investing in the largest cryptocurrency, inspired by $MicroStrategy(MSTR)$  , whose shares climbed more than 1,000% over the past two years as its $Bitcoin (BTC.CC)$ holdings soared. As of March 23, MicroStrategy, which renamed itself as Strategy, held 506,137 bitcoins.

Shares of GameStop climbed more than 15% Wednesday as the Bitcoin investment decision overshadowed a 28% slump in the company's net sales to $1.28 billion in its fiscal fourth quarter that ended Feb. 1. After the market closed, the stock gave back some of its gains to slip 6.6% as the company announced its plan to offer $1.3 billion in convertible senior notes. The proceeds will be used for general corporate purposes, including the purchase of Bitcoin, it said. 

More than 819,000 put and call options changed hands, more than double the previous trading day. That landed GameStop in third place for the most active stock options, behind $NVIDIA (NVDA.US)$ and $Tesla (TSLA.US)$ .  

Deep-pocketed investors and large speculators are also piling in. Seven of the 12 block trades posted so far were bullish and only three were bearish. The rest were neutral. 

The biggest of such transactions involved an active buyer paying a $1.12 million premium for in-the-money call options that give the holder the right to purchase 400,000 GameStop shares at $26.50, lower than the current price, in two days. 

That block trade, posted at 10:16:36 a.m. Wednesday, came with three bearish trades.

In a filing with the Securities and Exchange Commission Tuesday, the company said a portion of its cash or future debt and equity issuances may be invested in Bitcoin. But unlike Strategy, which doesn’t sell any of the Bitcoin it buys, GameStop left that door open. 

“We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire,” GameStop said in its filing. 

Even before the Bitcoin announcement, GameStop bears were already retreating. The volume of shares that were shorted fell to 798,630 yesterday, down from 1.71 million shares last Friday. 



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GME EPS Beats & Soars 10%! Bullish Meme Giant Comeback?
Video game retailer GameStop fell short of the market’s revenue expectations in Q4 CY2024. Its non-GAAP profit of $0.30 per share was significantly above analysts’ consensus estimates. Q4 revenue was $1.28 billion, a 28% year-over-year decline. The company has also announced its BTC reserves, joining MSTR's ranks.
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