GameStop Corporation (NYSE: GME) has successfully completed a $1.5 billion convertible debt offering, with a portion of the funds allocated for Bitcoin acquisition. This move marks a significant step for the video game retailer as it seeks to diversify its financial strategy and embrace digital assets.
Initially targeting $1.3 billion, the offering attracted strong investor demand, leading to an additional $200 million in aggregate principal amount of notes being issued. GameStop confirmed the completion of the fundraising in an April 1 filing with the U.S. Securities and Exchange Commission (SEC).
According to the filing, the proceeds will be used for general corporate purposes, including the purchase of Bitcoin in accordance with the company’s investment policy. The convertible notes, scheduled to mature on April 1, 2030, can be converted into GameStop’s common stock, with an initial conversion rate set at 33 shares per $1,000 of principal value.
Market Reaction and Share Performance
Despite the substantial fundraising, GameStop’s stock saw limited immediate movement. Shares closed up 1.34% at $22.61 on April 1, with a minor 0.5% gain in after-hours trading, per Google Finance data. However, when GameStop first announced its Bitcoin investment plan on March 25, the stock experienced a nearly 12% surge to $28.36, only to decline by almost 24% the following day.
GameStop’s decision to allocate funds for Bitcoin and U.S. dollar-pegged stablecoins was greenlit by its board on March 25. The company’s financial position has significantly strengthened over the past year, with cash reserves increasing to $4.77 billion as of February 1, up from $921.7 million the previous year, according to its fourth-quarter financial report.
Although GameStop is entering the Bitcoin treasury space later than some of its corporate peers, the move aligns with a broader trend among publicly traded companies. The strategy, widely popularized by MicroStrategy co-founder Michael Saylor, has seen numerous firms integrate Bitcoin into their balance sheets.
Previous Crypto Ventures and Industry Trends
GameStop has previously explored cryptocurrency ventures, including launching a crypto wallet for its users. However, the service was discontinued in November 2023 due to regulatory uncertainties.
The company is also widely recognized as a pioneer in the “meme stock” phenomenon, having experienced an unprecedented short squeeze in 2021. The event saw GameStop’s stock price soar by over 1,000% in a month, as retail investors coordinated efforts against hedge funds that had aggressively shorted the stock.
With its latest move into Bitcoin investment, GameStop is once again positioning itself at the intersection of retail investing trends and financial market shifts, leaving investors watching closely for its next strategic moves.