- GameStop’s stock plunges 22% triggering NYSE short sale restrictions on March 27.
- Short interest surged 234% to 30.85 million shares, a rare leap seen earlier in 2021.
- GameStop plans a Bitcoin acquisition, but analysts raise concerns about its business strategy.
GameStop (GME) faced a New York Stock Exchange (NYSE) Short Sale Restriction (SSR) after investors increased short selling. The stock price declined by 22% on March 27, 2025 after the company announced its Bitcoin acquisition. GameStop’s strategic moves have caused market wide worries about its direction which triggered increased short-selling activity and the implementation of a short sale restriction.
Surge in Short Selling Volume Signals Investor Skepticism
GameStop experienced a significant surge in its short sale volume of 30.85 million shares, which represented a 234% increase above the previous day on March 27. The trading volume surged to amounts similar to what was observed during the short squeeze effect that took place in January 2021 when GameStop stock prices saw gains. Short sale volume data from TradingView demonstrates this figure parallels the maximum amount of 33.26 million shares observed during the short squeeze in January 2021.
Source; TRADINGVIEW
The rise of short sale transactions indicates increasing doubts from investors about the company’s Bitcoin purchase decision. Multiple experts believe corporate participation in the cryptocurrency market demonstrates an unclear commitment toward long-term crypto strategies even though companies lack specific plans. The NYSE activated its SSR rule following the escalating short selling, which restricted shares that were available for short positions until traders completed their orders on the trading days.
Bitcoin Acquisition and Market Reaction
GameStop’s announcement about the Bitcoin acquisition on March 25 triggered a quick decline in its stock market value. GameStop’s announcement about buying Bitcoin and its $1.3 billion convertible notes offering triggered a sudden drop in investor trust which then caused the company’s stock price to fall by 22%. Market experts examined the decision using the dot-com era when companies rushed to include “.com” in their names without a solid business model to back it up.
Tom Sosnoff, founder of Tastylive, expressed concerns over the company’s new strategy, describing it as “dot-comish.” Meanwhile, eToro analyst Bret Kenwell highlighted that investor optimism about the company’s core business remained low, further dampening the stock’s outlook. This shift in business strategy has raised questions about the company’s ability to regain investor trust especially after a sharp decline in stock value.
Short Sale Restriction Brings Temporary Relief
Short-selling pressure on the company decreased as the SSR rule became active. The trading ban lasts throughout present market hours and extends to the next trading day. The shares of GameStop stood at $22.09 during publication, marking its minimum level since October 2024. Industry analysts track the stock price to determine if the SSR restriction brings stability or if negative sentiment will persist.
After launching Bitcoin plans and receiving the SSR GameStop’s stock price suffered an immediate negative market response. Investors doubted GameStop’s ability to enter the cryptocurrency world and wondered if its Bitcoin strategy would steady the company’s business operations.