Bitcoin News: GameStop’s Bold $1.5 Billion Investment in Bitcoin Sparks Market Reaction

GameStop’s $1.5B Bet on Bitcoin Pushes GME Stock Price

GameStop completed a $1.5 billion fundraising via a private offering exempt from SEC registration. The proceeds were invested in 0.00% convertible senior notes due in 2030, offered at $1,000 each. GameStop Corp’s (NYSE: GME) stock rose 0.57% to $22.74 despite initially crashing when the company announced its plans to create a Bitcoin reserve. The stock plunged from $28.36 to $22.09 on March 27 but recovered slightly afterward.

Grayscale Lists Two New Bitcoin ETFs Offering Income From BTC Volatility

Crypto asset manager Grayscale has listed two new exchange-traded funds (ETFs) on the New York Stock Exchange that offer investors a differentiated source of income through bitcoin’s (BTC) characteristic volatility. The Bitcoin Covered Call ETF (BTCC) and Bitcoin Premium Income ETF (BPI) utilize covered call writing strategies, involving selling call options to generate income from the premiums received. Call options are derivatives contracts that give the holder the right, but not the obligation, to buy an asset at a predetermined price within a defined period of time. BTCC aims to provide regular cash flow for investors by writing calls close to spot prices, with the options premiums potentially enhancing returns.

Bitcoin Price Steady Ahead of Trump’s Liberation Day Speech

Bitcoin price held steady above $80,000 as crypto and stock investors remained cautious ahead of Donald Trump’s Liberation Day tariff speech. BTC was trading at $84,500, up 10% from its March low. Meanwhile, U.S. stock market futures pointed lower, with the Dow Jones and Nasdaq 100 dropping by over 300 points. The main catalyst for Bitcoin and the stock market will be Trump’s Liberation Day speech at the ROSE Garden, where he is expected to announce reciprocal tariffs on most countries, potentially leading to a major recession this year. Analysts at Goldman Sachs and PIMCO have raised their recession odds to 35%. No specific mentions of other coins like ETH, LTC, or exchanges like Bybit, Coinbase were made in relation to this event.

Bitcoin as a Potential Lifeline Amid Rising US Debt

The United States federal deficit is projected to reach $1.9 trillion in fiscal year 2025, approximately 2.4 times larger than China’s estimated shortfall. This has led to discussions about Bitcoin potentially becoming a lifeline for US global dominance. The US Treasury recorded a $1.15 trillion deficit during the first five months of the fiscal year, marking a 38% year-over-year increase. The Congressional Budget Office estimates the full-year shortfall at 6.5% of GDP, significantly above the 50-year average. In contrast, China has set its 2025 deficit target at 4% of GDP. Bitcoin, as a decentralized digital asset, could play a crucial role in maintaining the financial stability of the US amidst rising debt levels.

Alabama Moves to Invest State Funds in Bitcoin

Alabama lawmakers have introduced legislation, Senate Bill 283 and House Bill 482, to allow the state to invest public funds in Bitcoin. The legislation would permit the state to allocate up to 10% of its public funds to digital assets with a market capitalization exceeding $750 billion, with Bitcoin currently being the only cryptocurrency that meets this threshold. The bills specify that these assets must be held directly by the state treasurer, a qualified custodian, or through exchange-traded products.