Cash-rich but issuing bonds to buy coins sparks public anger; Wedbush gives GameStop a "Underperform" rating

GameStop plans to issue $1.75 billion in 0% coupon convertible senior notes through a private placement, with net proceeds used for general corporate purposes. Despite the company's cash reserves reaching $6 billion and the acquisition of 4,710 bitcoins, Wedbush Securities still holds a "underperform" rating on it, with a target price of $13.50, believing that investors should not pay a premium for its cryptocurrency potential. Analysts point out that while this bond issuance reduces financing costs, it increases the risk of equity dilution, and traditional investors express concerns about its cryptocurrency strategy