GameStop (GME) Coin Dumps 94% After More Than 5x Surge on Bitcoin (BTC) Treasury Strategy

BNB Chain BNB/USD-based GameStop Coin (GME) tanked 94% in the last 24 hours, wiping out all of the gains from the previous day's 467% rally

A cryptocurrency named after GameStop Corp.GME, which had soared more than fivefold due to the firm’s BitcoinBTC/USD treasury strategy, reversed course dramatically on Wednesday.

What Happened: BNB ChainBNB/USD-based GameStop Coin (GME) crashed 94% in the last 24 hours, erasing all of the gains from the previous day’s 467% rally. The meme coin displayed rapid, short-lived rallies before eroding its entire value.

To be clear, the meme coin isn’t linked to GameStop in any way but rather capitalizes on the hype surrounding the meme stock.

See Also: Jim Cramer Applauds GameStop For Acting On His ‘Bitcoin Ploy,’ CEO Ryan Cohen Can’t Help But React

Why It Matters: The meme coin’s setback follows a decline in GameStop's shares, which fell 7.62% in after-hours trading following the company's announcement of a $1.3 billion convertible debt offering.

The offering enables investors to convert bonds into a predetermined quantity of shares on or before April 1, 2030, potentially leading to a dilution of shareholders' stake.

In a recent filing, GameStop approved adopting Bitcoin as a treasury reserve asset and stated its intention to support the purchases using cash, future debt, and equity issuances.

Now traders are discussing the implications of GameStop's actions and considering the broader impact on the cryptocurrency market.

Price Action: At the time of writing, GME was trading at $0.0001375, down 94% over the last 24 hours, according to CoinMarketCap.

GameStop shares closed 11.7% higher at $28.36 during Wednesday's regular session, according to data from Benzinga Pro. The stock was exhibiting high momentum—a measure of a stock's relative strength based on its price movement patterns and volatility—as of this writing. Visit Benzinga's Edge Rankings score to identify stocks with a higher momentum score.