GameStop, the popular videogame retailer, made headlines on March 27 as it announced plans to use proceeds from a $1.3 billion convertible debt offering to buy Bitcoin. This move was seen as a way to boost the company’s share performance, following the success of other public companies who have created Bitcoin treasuries.

However, the initial excitement from investors quickly turned to skepticism as GameStop’s stock, GME, dropped by nearly 24% the following day, wiping out nearly $3 billion in market capitalization. This chilly reception reflects concerns that the company may be using Bitcoin as a distraction from deeper issues with its business model.

Analysts also point to a more bearish outlook on Bitcoin as macroeconomic instability, such as ongoing trade wars, weighs on the cryptocurrency’s spot price. Bitcoin is currently down around 7% year-to-date, hovering around $87,000.

GameStop’s late entry into the world of corporate Bitcoin treasuries also raised questions about the company’s motives. Other companies, such as Strategy, have seen their share prices soar after investing in Bitcoin, leading to a trend of public companies creating Bitcoin treasuries. As of March 27, public companies collectively hold nearly $58 billion of Bitcoin.

While GameStop’s Bitcoin plans may have initially excited investors, the market’s reaction shows a more cautious approach to the cryptocurrency. As trade wars and other economic uncertainties continue to impact the market, it remains to be seen how GameStop’s Bitcoin investment will affect its overall performance.