TLDR
- GameStop raised an additional $450 million through convertible notes to fund general corporate purposes and potential investments
- The stock dropped 2.5% on Monday following the announcement, failing to generate positive investor reaction
- GameStop could potentially double its Bitcoin treasury to nearly 9,420 coins if it uses the full amount for crypto purchases
- Other companies like Metaplanet and DigiAsia Corp saw major stock spikes after Bitcoin purchase announcements
- Analysts maintain a Sell rating on GME with an $11.50 price target, citing valuation concerns
GameStop shares slumped after the video game retailer secured another $450 million in funding through its convertible note offering. The money could go toward Bitcoin purchases, but traders aren’t buying the hype this time around.
A record number 💥 GameStop Raises Another $450 Million to Buy Bitcoin, Bringing Total to $2.7 Billion, a Record Number #gme #Gamestop #bitcoin pic.twitter.com/lAvKyqwJHy
— AlphaGrid 🔍 (@AlphaGrid_AI) June 26, 2025
The gaming retailer filed with the SEC on Monday showing that the initial purchaser of its $2.25 billion note offering decided to buy an additional $450 million. GameStop says the funds will support general corporate purposes, investments, and potential acquisitions.
While Bitcoin wasn’t specifically mentioned in the filing, GameStop has previously indicated plans to build a cryptocurrency treasury. The company already holds 4,710 Bitcoin worth roughly $500 million at current prices.
If GameStop used the entire $450 million for Bitcoin purchases at today’s $108,000 price level, it could nearly double its crypto holdings. That would bring the total treasury to around 9,420 Bitcoin worth over $1 billion.
Market Reaction Falls Flat
GameStop shares opened Monday at $23.03 but quickly dropped to $22.45, marking a 2.5% decline. The stock has since recovered slightly, trading at $23.55 as of Wednesday’s close.
The muted reaction stands in sharp contrast to other companies that announced Bitcoin treasury plans. Japanese investment firm Metaplanet saw its stock jump 22% after revealing Bitcoin purchase plans.
Indonesian fintech DigiAsia Corp gained 91% on similar news. Paris-based Blockchain Group surged 225% following a Bitcoin purchase announcement in March.
GameStop experienced a similar lackluster response in May when it announced plans to buy $500 million worth of Bitcoin. Instead of rallying, GME shares dropped around 11% following that disclosure.
Strategy Matters More Than Headlines
Vincent Liu, chief investment officer at Kronos Research, says simply buying Bitcoin isn’t enough to move stock prices higher. Companies need clear execution plans and long-term vision to attract investors.
“It’s not just buying Bitcoin. It’s how and why,” Liu explained. “Clear strategy and strong execution build trust and attract liquidity, but if it’s just hype or a ‘sell the news’ event like GameStop, the impact will be muted.”
Liu notes that while companies are adopting Bitcoin to diversify treasury risk, successful implementation requires “a well-planned strategy to protect capital and strengthen liquidity.”
GameStop’s previous crypto ventures haven’t exactly been home runs. The company launched a crypto wallet for users but shut it down in November 2023 due to regulatory uncertainty.
It also created an NFT marketplace that met the same fate in January 2024. Both closures were attributed to unclear regulatory frameworks in the crypto space.
The original meme stock darling gained fame during the 2021 short squeeze that sent shares soaring over 1,000% in a single month. Retail traders coordinated to squeeze hedge funds that had been betting against the company.
Current analyst sentiment remains bearish on GameStop. The consensus rating sits at Sell with an average price target of $11.50, roughly half the current trading price.
The company trades at a $10.49 billion market cap with an average daily volume of 17.8 million shares. Technical indicators show a Hold signal despite recent volatility.
GameStop announced on June 24, 2025 that it issued the additional $450 million in notes as part of the private offering following the initial purchaser’s full exercise of their option.
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