The United States and China have preliminarily agreed on a framework, but still await final approval from Trump and Xi Jinping. Trump stated that tariffs on Chinese goods will be raised to 55%. The core CPI data was lower than expected, and the U.S. stock market experienced high-point fluctuations after several days of rebounds, with the market in a wait-and-see stage. NVIDIA CEO Jensen Huang mentioned at the Paris GTC conference that quantum computing may solve problems that current AI cannot handle, driving up quantum concept stocks. BTC and ETH slightly retreated and are currently experiencing minor consolidation. If the U.S. stablecoin bill and Ukraine crypto asset reserve bill pass, they may bring positive developments to the crypto market.
Table of Contents
ToggleUS-China Agreement Awaiting Trump and Xi's Approval, Experts Say "Same Soup, Different Flavor"
The US-China trade agreement has reached a preliminary consensus but still awaits final approval from US President Donald Trump and Chinese President Xi Jinping. Trump stated this morning (6/11) at the White House that he will impose a 55% tariff on Chinese goods, while China will impose a 10% tariff on US goods. However, experts argue that this shows no real progress, merely changing the wording while continuing to impose tariffs.
Inflation Below Expected Levels, Goldman Sachs: Fed Likely to Cut Rates Early
The latest US CPI data for May shows a monthly increase of only 0.1% and an annual increase of 2.4%, both lower than market estimates, suggesting that inflation pressure is not as severe as expected.
Goldman Sachs noted that the current tariff impact has not yet been reflected in prices, and the true inflation pressure may gradually emerge after the 90-day tariff suspension period ends. In the coming weeks, inflation and employment data will be crucial in determining whether the Federal Reserve will consider early rate cuts.
Huang Mentions Quantum Computing Potential, Related Concept Stocks Rise
NVIDIA CEO Jensen Huang stated at the Paris GTC conference on 6/11 that Quantum Computing is at a critical turning point and will become more powerful in the coming years, potentially solving problems that current AI cannot address.
Following the news, Quantum Computing concept stocks surged 25%, with Rigetti Computing rising over 11%. However, NVIDIA's own stock did not show outstanding performance, closing at $142.83, a slight decrease of 0.78%.
BTC and ETH Slightly Retreating and Consolidating, US and Ukraine Crypto Bills Key Positive Factors
In the crypto market, Bitcoin (BTC) price remains in the range of 108,800 to 108,200, slightly down 1.01% from yesterday. Ethereum (ETH) rose to $2,833 yesterday due to nearly $124.01 million in net inflows for the Ethereum spot ETF but has now slightly retreated to the 2,750 to 2,780 range, down 0.57% from yesterday, with both major cryptocurrencies experiencing minor declines and consolidation.
Investors can still pay attention to the progress of the US Stablecoin Bill (GENIUS Act) and the Digital Asset Market Clarity Act (CLARITY Act). According to reports, Ukraine is considering incorporating crypto assets into its national foreign exchange reserves. If these policies are successfully passed, they may bring positive developments to the crypto market.
Risk Warning
Cryptocurrency investments carry high risks, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
GameStop (NYSE ticker: GME) announced a private offering of convertible senior notes totaling $1.75 billion to raise a new round of funding. Analysts speculate that the funds raised may be used to purchase Bitcoin as a company reserve. However, unlike other companies that saw stock price surges after announcing Bitcoin purchases, GameStop's stock price continued to decline.
Convertible senior notes are debt instruments that can be converted into the issuing company's stock and have a higher priority in the company's capital structure. These notes allow investors to enjoy fixed interest income, but the interest is typically calculated on an accumulated basis and not paid in cash, so the company's debt to investors increases over time.
ToggleGameStop Stock Price Drops Due to First Quarter Performance
GameStop released its Q1 financial report, with net sales of $732.4 million, compared to $881.8 million in the same period last year. The Q1 performance significantly declined compared to the same period last year. After the financial report was published, GameStop's stock price dropped by 5.31% after hours on June 10.
GameStop Recently Purchased $513 Million Worth of BTC
Although GameStop did not explicitly state that the funds from this issuance would be used to purchase more BTC, the company indicated that the funds would be used for investments aligned with its overall strategy. Recently, GameStop raised $1.5 billion through convertible notes, with part of the funds used to purchase 4,710 BTC on May 28, with a market value of approximately $513 million.
GameStop Uses Priority Notes to Finance BTC Purchase, Will Investors Buy In?
For listed companies seeking to use BTC as a reserve, convertible priority notes are a common leverage tool. According to Bitcoin Treasuries.NET, GameStop currently holds 4,710 BTC, making it the 13th largest BTC holder. This $1.75 billion private placement has a 0% interest rate, with convertible priority notes maturing on June 15, 2032. The issuance includes an option for initial buyers to additionally purchase $250 million in notes, which can be converted to cash, GME stock, or both, depending on GameStop's decision.
GME stock has continued to decline since its first BTC purchase. According to Google Finance, since GameStop announced the BTC purchase on May 28, the stock price has dropped 18.5%. Including the 11.7% after-hours decline, GameStop has erased all gains since first announcing BTC investment as a reserve on March 25. GME's stock trend contrasts sharply with most listed companies whose stock prices rise after announcing or planning to purchase BTC.
Risk Warning
Cryptocurrency investment carries high risks, and prices may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
