GameStop increases convertible note offering to fund Bitcoin purchases
Video game and electronics retailer GameStop has dramatically increased its private convertible note offering to $2.25 billion, intensifying its push into Bitcoin investments. The move underscores GameStop’s evolving corporate strategy centered around crypto asset accumulation.
The company announced the upsized note offering on Thursday, a significant bump from the original $1.75 billion unveiled just a day earlier. The offering is expected to close next Tuesday, with net proceeds estimated at $2.23 billion—or up to $2.68 billion if additional purchase options are fully exercised.
$2.25 billion aimed at Bitcoin and broader investments
According to GameStop, the funds raised will be used for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy.” This language suggests a continued focus on building a Bitcoin treasury, following the company’s recent crypto activity.
On May 28, GameStop confirmed the purchase of 4,710 Bitcoin valued at approximately $513 million, just two months after officially unveiling its Bitcoin strategy on March 2.
GameStop becomes a major corporate Bitcoin holder
With its latest purchase, GameStop now ranks as the 11th largest corporate Bitcoin holder globally, according to Bitbo data, placing it just behind Galaxy Digital Holdings.
The move mirrors a broader trend among corporations like MicroStrategy, which has been using similar debt-financed strategies to expand its Bitcoin holdings. Just last week, MicroStrategy announced a nearly $1 billion upsized stock offering—quadrupling its previous $250 million raise.
Market reaction: GameStop shares dive 22%
Despite the bullish crypto strategy, investor sentiment took a hit. GameStop’s share price plunged over 22% on Wednesday following news of the initial $1.75 billion note issuance, as shown by Google Finance data.
The sharp stock drop comes amid broader concerns about the company’s performance. In Q1 2025, GameStop reported revenue of $732.4 million—missing analyst expectations of $754.2 million and down 17% from $881.8 million in the same period last year. Analysts at IG Bank attributed the decline to weaker physical video game sales.
GameStop doubles down on Bitcoin despite volatility
While the market response was negative, GameStop’s aggressive crypto-forward move signals a long-term bet on Bitcoin as a strategic asset. As more corporations explore Bitcoin as a balance sheet hedge, GameStop’s bold strategy could reshape how traditional retailers approach digital asset investment.
