Video game retailer GameStop Corporation has completed a convertible debt offering that brought in $1.5 billion, with plans to use some of the money to buy Bitcoin. The company announced the completed deal in an April 1 filing with the Securities and Exchange Commission, according to reports.
GameStop Exceeds Initial Fundraising Goal By $200 Million
The debt offering was originally set to raise $1.3 billion, but buyers opted to purchase an extra $200 million in notes, pushing the total to $1.5 billion. These convertible notes will mature on April 1, 2030, unless they are converted to stock, redeemed, or repurchased earlier.
When converted, these notes will initially change to 33 shares of GameStop common stock per $1,000 of notes, based on the SEC filing details. The company stated it would use the money for “general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the Company’s Investment Policy.”
GAMESTOP RAISES $1.5 BILLION THROUGH STOCK OFFERING
GameStop has successfully completed a $1.5 billion stock offering, significantly boosting its cash reserves. This influx of capital provides the company with new financial flexibility, potentially allowing it to explore… https://t.co/BXBn9TEnmz pic.twitter.com/VHk1NdPNMd
— Crypto Town Hall (@Crypto_TownHall) April 1, 2025
Stock Market Shows Mixed Response To Bitcoin Plans
The market’s reaction to GameStop’s completed debt offering was mild. GME shares closed up just 1.30% at $22.60 on April 1, with only a small 0.5% increase after trading hours, according to Google Finance data.
This calm response contrasts with what happened when GameStop first announced its Bitcoin plans. On March 25, the stock jumped nearly 12% to $28.35 after the Bitcoin purchase plan was revealed. But the next day, GME shares dropped almost 24% to $21.6.
BTCUSD trading at $84,995 on the daily chart: TradingView.com
Company Joins Growing Trend Of Corporate Bitcoin Investment
GameStop confirmed on March 25 that its board had approved investing in Bitcoin and US-dollar-pegged stablecoins using both the new funds and its existing cash reserves. As of February 1, those reserves stood at $4.75 billion, up dramatically from $922 million a year earlier.
The video game retailer isn’t the first public company to add Bitcoin to its balance sheet. Many others have already created Bitcoin treasuries, following a strategy that was popularized by Michael Saylor’s Strategy (formerly MicroStrategy).
Previous Crypto Ventures And Meme Stock History
This isn’t GameStop’s first step into cryptocurrency. The company previously launched a crypto wallet for its users but shut it down in November 2023, citing unclear regulations as the reason.
GameStop is best known among investors as the original “meme stock” success story. In 2021, the company’s shares surged over 1,000% in a single month during a historic short squeeze. This happened when retail traders banded together to buy shares, causing massive losses for hedge funds that had bet against the company.
The current Bitcoin investment strategy marks a new chapter for the retailer as it looks to use its substantial cash reserves in ways that might appeal to its dedicated investor base. With $4.75 billion in cash and the new $1.5 billion from the convertible notes, GameStop has significant resources to pursue this cryptocurrency investment alongside its core retail business.
Featured image from MoneyCheck, chart from TradingView
