GameStop Completes $1.5B Convertible Notes Offering, Eyes Bitcoin for Treasury
GameStop has successfully raised $1.48 billion through a convertible senior notes offering, surpassing its initial $1.3 billion target.
GameStop has successfully raised $1.48 billion through a convertible senior notes offering, surpassing its initial $1.3 billion target.
The video game retailer finalized the sale on April 1, 2025, as outlined in its filing with the U.S. Securities and Exchange Commission (SEC). The company plans to allocate a portion of these funds toward purchasing Bitcoin, marking a strategic shift in its financial approach.
GameStop’s board approved the move on March 25, greenlighting investments in Bitcoin and U.S. dollar-pegged stablecoins. This decision aligns the company with other publicly traded firms diversifying their balance sheets with digital assets. The financing will also draw from GameStop’s $4.77 billion cash reserves, reinforcing its push beyond the traditional retail sector.
“The Company’s investment policy permits investments in certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stablecoins, and if the Company acquires Bitcoin or U.S. dollar-denominated stablecoins, the Company will be exposed to certain risks associated with Bitcoin or stablecoins, respectively.”
The strategy mirrors that of Strategy (formerly MicroStrategy), the largest corporate Bitcoin holder, which has accumulated over 500,000 BTC, currently valued at more than $45 billion. Like Strategy, GameStop is leveraging convertible senior notes to support its Bitcoin acquisition plan.
Strategy recently reinforced its position as the largest corporate Bitcoin holder by acquiring an additional 1,070 BTC for $101 million at an average price of $94,004 per Bitcoin. In its latest investor filing, Strategy reported a Bitcoin yield of 48% for Q4 2024 and 74.3% for the full year. As of January 5, the company’s Bitcoin reserves stood at 447,470 BTC, accumulated at a total cost of $27.97 billion, with an average purchase price of $62,503 per Bitcoin.
However, concerns loom over the retailer’s financial pivot. Bret Kenwell, an analyst at eToro, questioned the company’s direction, stating,
“If Bitcoin is going to be the pivot, where does that leave everything else?”
This skepticism is heightened by GameStop’s ongoing struggles in its core retail business, including the closure of several store locations this year.
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