GameStop Eyes Bitcoin Treasury Play

CRYPTO
GameStop Eyes Bitcoin Treasury Play

GameStop has priced its $1.3 billion private offering of convertible senior notes, aiming to add bitcoin to its balance sheet. The zero-coupon notes, due in 2030, will initially convert at a rate of 33.4970 shares per $1,000, equating to a conversion price of around $29.85 per share—roughly 35% above GameStop’s last closing price of $22.09. If successful, the move would make GameStop the fourth-largest corporate holder of bitcoin, ranking just behind Riot Platforms and ahead of Tesla.

CEO Ryan Cohen views this strategy as a way to better deploy the company’s cash reserves, though investors appear cautious. GameStop shares fell more than 22% on Thursday following the announcement. The offering reflects a bold pivot into digital assets, as the company looks to redefine its future. Despite skepticism, this initiative positions GameStop within the growing list of public firms using BTC as a treasury asset and potential long-term store of value.

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FINANCE
Automakers Hit by Import Tariffs

Shares of major automakers dropped after President Trump announced a 25% tariff on auto imports, set to begin April 3. Automakers like General Motors, Ford, and Stellantis rely on complex supply chains across North America, meaning the new tariffs will increase production costs. UBS analyst Joseph Spak noted that while details remain unclear, the impact could be painful. Higher costs may push car prices up, adding pressure to already strained consumers and potentially fueling inflation.

GM shares fell 8.2%, as the company imports about 40% of its U.S.-sold vehicles. Ford, less exposed with only 10% of vehicles sourced abroad, slipped 4.2%. Stellantis dropped 2.5%, Honda 2.7%, and Toyota 2.4%. Tesla, which builds its cars in the U.S., was the outlier, rising over 5%. Auto parts suppliers also declined: Autoliv fell 3.7%, Aptiv 5.6%, and Gentex 1.7%. Some automakers rushed inventory into the U.S. ahead of the tariffs.

TECH
Jack Ma Sparks Alibaba Comeback

In November 2023, Jack Ma urged Alibaba to "correct its course" in an internal memo—his first major public message in years. At the time, Alibaba was struggling: its share price was near record lows, competition was fierce, and regulatory pressure was intense. But Ma’s message sparked a turning point. Under new leadership from co-founders Eddie Wu and Joe Tsai, Alibaba streamlined operations, refocused on e-commerce and cloud, and made AI a top priority.

The company scrapped plans to split into six units, empowering younger leaders and simplifying its strategy. With Chinese political winds shifting back in favor of private enterprise, Ma reemerged alongside President Xi Jinping in early 2024, signaling renewed government support. Alibaba has since launched open-source AI models and invested over $50 billion in AI infrastructure. Its cloud business is growing, and its U.S.-listed shares have quietly surged nearly 60% this year—adding over $100 billion to its market value.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.