Swissquote Seeks to Shake Crypto Link Despite 1,500% Stock Rally
When Swissquote Group Holding SA became the first European bank to let clients trade Bitcoin in 2017, the cryptocurrency was changing hands for around $2,000 per token.
Shares in the online brokerage have surged more than 1,500% since then, riding the wave of soaring demand for digital currencies that has pushed Bitcoin back above $100,000. But being closely linked to crypto also comes with volatility and risks — and Swissquote wants to be clear that there's more to the company.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
30 minutes ago
- Business Insider
GameStop's (GME) Contrarian Market Path Leaves Wall Street Divided
For over five years, GameStop (GME) has moved beyond its roots as a traditional brick-and-mortar video game retailer. Its transformation began in 2021, when the meme-stock phenomenon catapulted the company into financial headlines and dramatically reshaped its investor base. Since then, GameStop has remained one of the most polarizing stocks in the market, driven by retail investor enthusiasm and a leadership overhaul led by activist investor-turned-CEO Ryan Cohen, who aimed to revitalize a business facing consistent losses and declining relevance. Confident Investing Starts Here: As of 2025, the company has eked out a modest profit and built a substantial cash reserve, largely through opportunistic equity offerings that capitalized on retail-driven momentum. GameStop is now pivoting toward digital assets, including a sizable bet on Bitcoin, supported by a recent $1.3 billion convertible bond issuance. Despite these bold moves, the company's core fundamentals remain uncertain. Revenue continues to decline, and its valuation remains difficult to justify through traditional financial metrics. Cohen, until recently, has maintained a low public profile, while insider buying activity has subtly supported ongoing investor interest. In my view, this highly unconventional situation—where the fundamentals are neither weak enough to justify a sharp sell-off nor strong enough to support a clear long-term value thesis—makes it difficult to adopt a definitive stance. As such, I'm maintaining a Hold rating for now. The CEO Who Finally Spoke Far from standard practice for a mid-cap publicly traded company, GameStop CEO Ryan Cohen rarely speaks publicly. Since taking the helm, he's never hosted an earnings call and has only given one interview since 2023. More recently, though, Cohen sat down for a rare conversation with crypto-focused media outlet The Crypto Times. In the interview, Ryan Cohen offered a candid assessment of GameStop's past, acknowledging that the company was in poor financial condition and experiencing significant losses when he first became involved. He attributed much of the decline to the broader industry shift from physical game sales to digital downloads—a trend that severely impacted GameStop's legacy business model. To reverse the company's trajectory, Cohen and his team implemented aggressive cost-cutting measures and instilled greater fiscal discipline. The strategy appears to have paid off: in Fiscal 2024, GameStop reversed a $313 million net loss from the prior year and reported a modest profit of $6.7 million. By Fiscal 2025, the company posted net income of $131.3 million, with operations approaching breakeven margins. Cohen also emphasized GameStop's strategic pivot toward collectibles, particularly in the trading card segment, spanning both sports and trading card games (TCGs). Most notably, he underscored that GameStop has become a leaner and more profitable retailer, despite the continued decline in quarterly revenue. One of the more revealing aspects of the interview was Cohen's candid account of his years-long battle to reshape the company. He made it clear that cleaning house—both at the executive and board levels—was critical to realigning GameStop with long-term shareholder interests. 'We got rid of all of that nonsense, and we focused on running the business profitably,' he said. Since becoming GameStop's largest shareholder in 2020, Ryan Cohen has played a central role in reshaping the company's leadership. He led a complete overhaul of the board, facilitated the departure of then-CEO George Sherman, supported the appointment of Matt Furlong as his successor, and ultimately assumed the CEO role himself in 2023. Meme Hype, Net Cash, and Bitcoin Bets As much as skeptics may be reluctant to acknowledge it, GameStop's management has made meaningful progress in steering the company toward profitability, despite significant challenges. Perhaps even more noteworthy is how Ryan Cohen and his team have successfully managed the complexities of the meme-stock phenomenon. Rather than resisting the volatility, they capitalized on it—executing timely equity offerings during momentum-driven rallies, such as those triggered by high-profile events like Y ouTuber Keith 'Roaring Kitty' Gill disclosing a sizable stake in the stock. In FY 2024 alone, GameStop raised an impressive $3.45 billion through stock sales, resulting in substantial shareholder dilution—nearly 50%, including that of Cohen himself. Prior to the offering, the company held a net cash position, with $921 million in cash against $616 million in debt. Following the capital raise, GameStop's net cash position rose sharply to $4.36 billion, according to its most recent filings. Following that, Cohen made a pivotal—though largely quiet—change to GameStop's strategy by revising the company's investment policy. Previously limited to fixed-income securities, the updated policy now permits broader equity investments, all under Cohen's direct oversight. This strategic shift set the stage for a bold move: an allocation to Bitcoin. As of the latest filings, GameStop holds 4,710 bitcoins, currently valued at approximately $513 million. In a recent interview, Cohen outlined his rationale, describing Bitcoin as a modern hedge against global currency debasement and systemic financial risk, similar to gold, but with distinct advantages. Unlike gold, he argued, Bitcoin offers superior portability, greater transparency, and more long-term upside. While gold's market capitalization hovers around $20 trillion, Bitcoin's remains under $2 trillion. Cohen also emphasized that the decision was his own, stating clearly that he's not following anyone else's playbook. A Calculated Dilution for Strategic Growth Back in March, GameStop announced a $1.3 billion private offering of convertible senior notes to be used for general corporate purposes, including buying more Bitcoin, somewhat following the playbook of companies like MicroStrategy (MSTR) when it comes to strategic moves to acquire Bitcoin. Instead of issuing traditional debt with fixed interest obligations, GameStop opted for convertible bonds—securities that allow investors to convert their holdings into equity. Each $1,000 bond can be converted into 33.4970 shares, implying a conversion price of approximately $29.85. Should the stock rise significantly above that level, bondholders are likely to convert, capturing upside potential while diluting existing shareholders. Notably, the bonds include no lock-up restrictions, meaning conversions can occur as soon as they become economically advantageous. This feature could contribute to added share dilution during rallies, potentially amplifying stock volatility. While this structure may put some pressure on near-term share performance, it provides GameStop with meaningful financial flexibility, thereby enhancing cash flow and avoiding the recurring burden of fixed interest payments. In essence, it's a strategic trade-off that Ryan Cohen appears willing to embrace in pursuit of long-term optionality. Is GameStop a Good Stock to Buy? Given the highly unconventional nature of GameStop's evolving fundamentals, most Wall Street analysts have largely stepped away from covering the stock. One of the few remaining voices is longtime skeptic Michael Pachter of Wedbush, who continues to maintain a Sell rating. In April, following the announcement of GameStop's Bitcoin investment, Pachter modestly raised his price target to $13.50 per share following the news that GameStop had invested in Bitcoin. GameStop's Remains a Puzzle Bears Just Can't Solve GameStop remains a company whose current market valuation—over $13.6 billion—is difficult to justify based on its underlying business fundamentals. Revenue continues to decline annually, operations are hovering around breakeven, and the company lacks a clearly defined strategy for long-term value creation beyond cost-cutting and opportunistic investments, such as its recent move into Bitcoin. If assigning a valuation, one could argue that the company's equity is largely supported by its sizable net cash position, with a modest premium for its gradually diminishing core business. That said, a mix of lingering—albeit more subdued—retail investor enthusiasm, an unconventional leadership approach, a bold Bitcoin allocation, and insider share purchases with limited disclosure have helped keep the stock trading at elevated levels. In a market where sentiment can override fundamentals, the stock remains unpredictable and difficult for bearish investors to challenge. Given the speculative nature of this setup and the absence of strong fundamental support, I'm maintaining a Hold rating.
Yahoo
39 minutes ago
- Yahoo
Investing £5k of savings can generate a passive income of…
Buying dividend shares is a rapid and simple way to start earning a passive income. As with every investment, there are risks involved. But such threats can be managed through prudent decision-making and portfolio diversification. And when done well, the subsequent income stream can be quite lucrative, especially in the long run. So let's say an investor has £5,000 of capital sitting in a savings account. How much passive income can this money generate overnight and over the long term? The amount generated depends on which dividend stocks an investor decides to buy. Most tend to stick with simple index tracker funds. And right now, the FTSE 100 index offers a respectable 3.4% yield. That means, overnight, a £5,000 could generate a passive income of £170 a year. Obviously, that's not a groundbreaking sum, especially since many savings accounts offer similar returns right now at much lower levels of risk. However, there's also capital gains to take into consideration. And when combined with the dividend yield, the FTSE 100's historically generated close to an 8% annualised return for investors. Let's assume this trend continues over the next decade. What does this mean for an investor's passive income if they decide to reinvest any dividends between now and 2035? Without any additional capital, the original £5,000 will have grown to around £11,100. And if the yield's still 3.4%, that means the passive income stream will reach £377.40. That's a notable improvement. But what if we can do even better? Instead of relying on an index fund, investors can take matters into their own hands and invest in individual stocks directly. And right now, there are plenty of FTSE 100 constituents offering significantly higher yields. Take Aviva (LSE:AV.) as an example to consider. Today, the insurance giant already offers a more impressive payout with a 5.9% yield. So a £5,000 investment would instantly unlock an annual passive income of £295. But those who hopped on the bandwagon just five years ago are already earning considerably more. Following the appointment of CEO Dame Amanda Blanc in 2020, the company has undergone a significant transformation. It divested its non-core business ventures, raising over £8bn while simultaneously streamlining operations. Pairing this increase in efficiency with boosted activity within the annuity market, courtesy of higher interest rates, shareholders have been immensely rewarded. The Aviva share price has more than doubled, turning a £5,000 investment into £10,400. And at the same time, dividends were hiked by an average of 18% a year, turning an already substantial 5.3% yield at the time into a 12.2% payout. As such, a £5,000 initial investment in 2019 is now generating a passive income of £1,268.80. Sadly, Aviva shares aren't guaranteed to replicate this success between now and 2030. The company's still attempting to digest its £3.7bn acquisition of Direct Line Group. And with the UK government flirting with new mandates to force pension funds to invest more in UK assets, compliance-related costs of evolving regulation could create new headaches that impede performance. Nevertheless, Aviva serves as a good example of how stock picking opens the door to potentially superior returns in the long run. The post Investing £5k of savings can generate a passive income of… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
44 minutes ago
- Yahoo
Reform declares war on all gold-plated public sector pensions
A Reform UK government would radically overhaul gold-plated public sector pensions to stop them bankrupting Britain. Richard Tice told The Telegraph he would put everything on the table and end the taxpayer 'rip off' if his party won the next general election. Reform's deputy leader said the party would consider moving all public sector employees out of their 'Rolls-Royce' pension plans and into the defined contribution schemes almost all private sector workers have. Britain currently hands £54bn a year to public sector retirees and another £35bn in pension contributions to current state workers, with both groups entitled to guaranteed, inflation-linked payments for life. It comes after Reform pledged to axe defined benefit council pensions, which a recent Telegraph investigation revealed now costs some local authorities more than half of what they raise in council tax. Britain currently has more than three million public sector pensioners, the vast majority of whom are retired NHS workers, teachers, civil servants and members of the armed forces. Their schemes are all unfunded, meaning the contributions that come in from employers and employees are immediately used to pay current retirees, rather than being prudently invested to pay future pensions. However, contributions have fallen short of the amounts paid out, with taxpayers funding a £49bn shortfall over the past decade alone. Historically, they also haven't covered the cost of new pension rights built up by current workers. John Ralfe, a pensions consultant, calculated that the shortfall between contributions and future pensions was £208bn between 2013-23 – and it will be met by current and future taxpayers. The system, which would be illegal in the private sector, has built up pension liabilities running into the trillions. Speaking to The Telegraph, Mr Tice said action was needed where successive governments had failed. He said: 'We've got to have these conversations over the next few years and wake people up as to why we're in such a financial mess. Public sector pay and benefits have soared and yet productivity has collapsed, and it's a catastrophe. 'I want to be honest with the country. I want to say, 'if we don't sort this out, this will be a major factor in the country going bankrupt'. It's that serious.' He also confirmed that Reform would consider moving every public sector worker into the type of defined contribution schemes that almost all private sector workers are members of. He added: 'Everything has got to be on the table. The old rule was that public pay was less than the private sector because they had a more generous pension scheme, but successive governments have lifted pay in the public sector and therefore the old deal is no longer valid. 'Bluntly, there's been a failure to be honest about this. The public sector has pulled the wool over the eyes of the taxpayer. We're going to talk about it for the next four years: that taxpayers are being ripped off and it can't go on.' Last week, Mr Tice said that Reform-controlled councils would stop offering the generous pension scheme to new employees and reduce pay rises for existing workers to balance out the cost of funding their retirements. The Local Government Pension Scheme, the largest funded scheme in the UK, already spends £15bn a year on paying pensions across Britain. A recent Telegraph investigation uncovered five local authorities that stuff more than half of their council tax into staff pension pots. Another 19 fork out more than a third, while 60 spend more than a fifth on funding the generous schemes. It came after a series of Telegraph revelations about the cost of public sector pensions. Last year, we calculated that Britain's current bill was £4.9 trillion, with each household on the hook for £173,000. In October, we reported that another £20bn would be added to taxpayer-funded pension payouts after they rose another 1.7pc following September's inflation figure. Last month, we showed how the latest public sector pay rise would cost another £1bn in pension contributions alone. We also revealed how taxpayers have been handed extra pension bills of £45bn for Royal Mail, £1.7bn for the Environment Agency and more than £300m for retired train drivers. Switching public sector workers to defined contribution pensions could send the taxpayer's annual bill plummeting to around £4.5bn, saving almost £28bn a year, calculations have shown. However, Barry McKay, of pensions firm Barnett Waddingham, warned it would be difficult to make the change. He said: 'If you move to defined contribution, those contributions paid by existing workers would go into a pot somewhere to be invested and grow for the benefit of each worker, but in doing so there would be no money coming in to pay existing pensions. 'The Treasury would have to find a huge amount of money to pay the existing pensioners from somewhere else, because they don't have the contribution income any more. That leaves a massive hole in the Treasury accounts.' He added: 'There is a problem that we're effectively stuck with defined benefit.' Neil Record, a pensions expert and former Bank of England economist, said: 'The only practical solution to public sector pensions' increasingly intolerable burden on taxpayers is for the Government to offer a cash alternative, as an option, to all public sector employees. 'My guess is that in return for an approximately 30pc pay rise, most public sector employees would choose to give up accruing new pension rights as long as their existing rights were fully honoured.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
