GameStop (GME) Stock: Company Raises $1.75B Through Convertible Notes After Major Bitcoin Purchase

TLDR

GameStop announced a $1.75 billion convertible senior note offering with 0.00% interest, maturing in 2032 The company recently purchased 4,710 Bitcoin for approximately $507 million as part of its new treasury strategy Proceeds will fund general corporate purposes, investments, and potential acquisitions under the company’s Investment Policy The notes can convert into cash, GameStop shares, or both depending on company election at settlement GameStop shares dropped 10% in after-hours trading following the announcement

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GameStop dropped the announcement after Wednesday’s market close. The video game retailer plans to raise $1.75 billion through convertible senior notes.

The timing isn’t random. Just two weeks ago, GameStop revealed it bought 4,710 Bitcoin worth about $507 million at current prices.

GameStop has purchased 4,710 Bitcoin. pic.twitter.com/gGdr0BRrAv

— GameStop (@gamestop) May 28, 2025

The convertible notes carry zero interest and mature on June 15, 2032. Initial purchasers get the option to buy an additional $250 million in notes within 13 days.

GameStop shares fell 10% in after-hours trading following the announcement. The market reaction suggests investors weren’t entirely thrilled with the news.

GameStop Corp. (GME)

The notes will only be sold to qualified institutional buyers under Rule 144A. This private offering won’t be registered under the Securities Act.

GameStop stated the proceeds will fund general corporate purposes. The company also mentioned investments aligned with its Investment Policy and potential acquisitions.

Bitcoin Treasury Strategy Takes Shape

GameStop’s Bitcoin purchase happened on May 28. The company announced it through its official X account, catching many by surprise.

At Bitcoin’s current price of $107,647, those 4,710 coins are worth roughly $507 million. Bitcoin has dropped 1.64% in the past 24 hours but gained 2.38% over the last week.

The crypto purchase represents a major shift in GameStop’s financial strategy. The company previously focused on its core gaming business and digital transformation efforts.

GameStop hasn’t disclosed whether it plans to hold Bitcoin long-term. The company also hasn’t revealed if more crypto purchases are planned.

The March release established Bitcoin as a treasury reserve asset under the company’s Investment Policy. This policy now guides how GameStop allocates its capital.

Convertible Notes Structure and Terms

The notes can convert into cash, GameStop Class A shares, or a combination of both. The company gets to decide how conversions are settled.

Specific terms like conversion rates and redemption provisions will be set at pricing. The reference price will be based on GameStop’s volume-weighted average price between 1:00 p.m. and 4:00 p.m. EDT on the pricing date.

The notes are unsecured, meaning they’re not backed by specific company assets. Investors rely on GameStop’s general creditworthiness for repayment.

GameStop emphasized there’s no guarantee the offering will be completed as planned. Market conditions could affect the final terms or even cancel the deal entirely.

The company’s recent moves suggest a deliberate pivot in financial direction. GameStop appears willing to explore unconventional assets alongside traditional fundraising methods.

The video game retailer continues its transformation beyond its original business model. These latest financial moves could set the foundation for future growth strategies.

GameStop’s Bitcoin holdings now represent a substantial portion of its balance sheet. The convertible notes offering provides additional liquidity for future investments or acquisitions.

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