TLDR
- GameStop has completed a $1.5 billion convertible debt offering, with proceeds intended for buying Bitcoin
- The company received board approval on March 25 to invest in Bitcoin and USD-pegged stablecoins
- The convertible notes will mature on April 1, 2030, with an initial conversion rate of 33 shares per $1,000
- GameStop had $4.77 billion in cash reserves as of February 2024
- The company is joining other public companies in creating Bitcoin treasuries, following a trend popularized by Michael Saylor’s Strategy
GameStop Corporation has finished a convertible debt offering that raised $1.5 billion, with plans to use some of the proceeds to purchase Bitcoin. The video game retailer announced the completion of the offering on April 1, 2025, in a filing with the Securities and Exchange Commission (SEC).
The offering was initially set to raise $1.3 billion, but purchasers opted for an additional $200 million in notes. After fees, the net proceeds to the company were $1.48 billion.
“The company expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the Company’s Investment Policy,” GameStop stated in the filing.
Bitcoin Investment Strategy
The move comes after GameStop’s board approved an update to the company’s investment policy on March 25. This update allows GameStop to invest in Bitcoin and US-dollar-pegged stablecoins using both the convertible debt offering and its existing cash reserves.
Those cash reserves stood at $4.77 billion as of February 1, 2025. This is a major increase from the $921.7 million reported a year earlier, according to GameStop’s 2024 fourth-quarter financial statements.
The convertible notes represent debt that can later be converted into equity. They are scheduled to mature on April 1, 2030, unless they are earlier converted, redeemed, or repurchased by the company.
The conversion rate for the notes will initially be 33 shares of Common Stock per $1,000 principal amount of notes. This rate determines how many shares investors receive if they choose to convert their notes to equity.
GameStop’s Bitcoin purchases could be imminent or may have already begun following the closing of the offering. The company did not specify exactly when it would begin purchasing Bitcoin or how much of the proceeds would be allocated to crypto investments.
Market Reaction
GameStop’s stock didn’t see a major move following the announcement of the completed offering. GME closed the April 1 trading day up 1.34% at $22.61, with only an additional 0.5% increase after market hours.
This tepid market reaction contrasts with the initial announcement of GameStop’s Bitcoin plans. The stock jumped nearly 12% to $28.36 on March 26, the day after the company announced its intention to invest in Bitcoin.
However, the stock’s fortunes reversed the following day, with GME shares dropping nearly 24% to $21.68. Some analysts suggested this drop reflected shareholders’ fears about GameStop’s deeper business model issues.
GameStop is joining a growing list of public companies that have added Bitcoin to their balance sheets. This approach was popularized by Michael Saylor’s Strategy, with many firms now holding Bitcoin as a treasury asset.
The video game retailer has made previous ventures into the crypto space. GameStop launched a crypto wallet for its users, which it eventually shut down in November 2023, citing regulatory uncertainty as the reason.
GameStop gained fame in the investment world as the first major example of meme stock success. A short squeeze in 2021 sent the stock surging over 1,000% in a month as retail traders united against hedge funds that had been shorting the company.
The company is led by CEO Ryan Cohen, who has been working to transform the traditional brick-and-mortar retailer. The Bitcoin investment appears to be part of this broader strategy to modernize the company and explore new technological opportunities.
The $1.5 billion raise gives GameStop major buying power in the Bitcoin market. With Bitcoin priced at approximately $85,000 at the time of the announcement, the company could potentially acquire a sizeable position in the cryptocurrency.
GameStop did not provide details on the timing or amount of its planned Bitcoin purchases. Many companies that add Bitcoin to their balance sheets do so through a dollar-cost averaging approach, buying set amounts over time rather than making a single large purchase.
The move comes as Bitcoin has reached new all-time highs in 2025, with growing institutional adoption helping to drive up prices. GameStop’s entry into the market represents another sign of mainstream corporate interest in cryptocurrency as both an investment and a treasury asset.
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