GameStop Raises $1.75B for Bitcoin

GameStop Raises $1.75B for Bitcoin

GameStop has announced a $1.75 billion offering of convertible senior notes, targeting qualified institutional buyers. The company stated that proceeds will help fund investments aligned with its official Investment Policy — which includes holding bitcoin as a treasury reserve asset. This follows a similar move in March, when GameStop raised $1.3 billion and used part of it to purchase 4,710 BTC, worth around $500 million at the time.

This latest debt offering includes an option for an additional $250 million in notes and carries no interest, with maturity set for June 2032 unless converted or repurchased sooner. The announcement came after U.S. markets closed on Wednesday, and GameStop (GME) shares dropped 10% in after-hours trading.

The company, once known primarily as a struggling video game retailer and meme stock, appears to be doubling down on its bitcoin strategy, signaling a shift in financial management toward crypto-based reserves.

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Trump Plans Unilateral Tariff Letters

Former President Donald Trump said he plans to send letters to U.S. trading partners within weeks outlining unilateral tariff terms, telling reporters, “This is the deal, take it or leave it.” The comment comes as a pause on his harsher tariffs is set to expire July 9.

Treasury Secretary Scott Bessent told Congress the pause will likely be extended for countries negotiating “in good faith.” Trump also announced a tentative U.S.–China agreement, which includes limited easing of rare earth mineral restrictions and continued access for Chinese students in U.S. colleges.

The president said total tariffs on Chinese goods would reach 55%, combining prior duties rather than adding new ones. Legal battles continue over the broader tariff program, though a federal appeals court recently allowed it to remain in place for now. The evolving situation leaves trade partners and markets uncertain about the final outcome of U.S. trade policy under Trump’s plan.

Insurance Costs Expected to Plummet

As self-driving vehicles like Waymo and Tesla expand on U.S. roads, the auto insurance industry is undergoing a major shift. Goldman Sachs predicts insurance costs could drop by over 50% by 2040 due to fewer human-related accidents. However, liability may shift from drivers to automakers, especially if accidents stem from software glitches or cyberattacks.

Analysts believe future policies will focus more on the severity of incidents and product liability than on accident frequency. Waymo, for instance, already uses fleet-style insurance, treating its autonomous system as the "driver." Despite promising safety results—like a 92% drop in bodily injury claims in a Swiss Re study—concerns remain about tech failures and regulatory inconsistencies across states.

Federal standards are in development, and major players like Alphabet and Tesla are heavily investing in this space. Still, insurance savings may be offset by the high cost of self-driving technology, simply shifting expenses rather than eliminating them.

Inflation Eases, Bond Yields Drop

Bond markets rallied after the latest inflation report came in softer than expected, easing concerns about price spikes from Trump’s tariffs. The Consumer Price Index showed a 2.4% year-over-year increase—matching forecasts and near April’s four-year low—with just a 0.1% monthly rise in May. This sent 10-year Treasury yields down to 4.413%, from 4.472% the day before. Analysts called the data “friendly” for bonds, signaling lower inflation pressure.

Despite an early bump, U.S. stocks dipped after the report. The S&P 500 lost 0.3%, and the Nasdaq fell 0.5%, while the Dow ended flat. Interest-rate-sensitive stocks like Synchrony Financial and Apollo Global rose, as expectations for multiple Fed rate cuts in 2025 climbed.

Recent strong jobs data and progress in U.S.–China trade talks have also supported markets. Beijing agreed to restore rare-earth export licenses—with a six-month limit—while crude oil jumped 4.9% on Middle East security concerns, closing at $68.15 a barrel.

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.