GameStop has raised its convertible note offering to $2.25 billion, an increase from the $1.75 billion previously announced earlier this week, as detailed in a Thursday evening press release.
Key Takeaways:
- GameStop increases its convertible note offering to $2.25 billion, with a 32.5% premium conversion price.
- The company currently holds 4,710 BTC but is not committing to future cryptocurrency acquisitions.
- Potential proceeds may be utilized for investments or acquisitions, as trading cards are now a significant revenue stream.
This announcement follows a similar fundraising effort in April when GameStop secured $1.5 billion and comes shortly after the company’s foray into Bitcoin.
Despite the fundraising news, shares of the Texas-based retailer saw a decline of 24% in the past week, closing at $22.14 on Friday, although they remained stable immediately following the announcement.
GameStop’s Zero-Coupon Notes Come with 32.5% Conversion Premium
The newly issued notes, which do not carry interest, feature a conversion price of approximately $28.91 per share, reflecting a 32.5% premium relative to the stock’s average price on Thursday afternoon.
This financial approach mirrors the strategy adopted by MicroStrategy, known for utilizing premium note offerings to bolster its Bitcoin holdings without causing immediate dilution to existing shareholders.
In March, GameStop revealed it had acquired 4,710 Bitcoin, a move that spiked the share price above $28 at the time. However, the company’s future intentions regarding expanding its cryptocurrency reserves remain unclear.
CEO Ryan Cohen has indicated that GameStop will not follow other companies’ purchasing strategies or disclose its buying plans. In a recent interview, he avoided confirming whether additional Bitcoin purchases would occur.
The press release indicated that the proceeds from the offering will be allocated for “general corporate purposes,” which may include investments consistent with GameStop’s investment strategy and potential acquisitions.
$GME GameStop just locked in the terms for their convertible note offering.
Upsized to $2.25 billion from the original $1.75 billion, with 0.00% interest, meaning bondholders don’t get paid unless they convert.
GameStop gave buyers the right to purchase up to $450 million more in notes… pic.twitter.com/qnN4pVLM39
— Han Akamatsu 赤松 (@Han_Akamatsu) June 13, 2025
Although the language in their announcement was somewhat ambiguous, it leaves the possibility open for further initiatives in the digital asset space.
GameStop’s previous ventures into the cryptocurrency arena have yielded mixed results. The company launched an NFT marketplace during the last market cycle but ceased operations early last year.
At its most recent annual shareholder meeting, Cohen shifted the focus toward trading cards, which now represent nearly 30% of the company’s quarterly revenue. “We’re focusing on trading cards as a natural extension of our existing business,” he stated.
With the new capital secured and Bitcoin already on its balance sheet, GameStop may consider revisiting Bitcoin investments when market conditions are favorable.
223 Companies Hold Bitcoin
A growing number of companies are adopting Bitcoin as a hedge to their balance sheets or as a strategic investment. Recent findings reveal that 223 public companies currently hold Bitcoin, nearly doubling from 124 just days earlier.
Collectively, these firms hold over 819,000 BTC, which accounts for approximately 3.9% of the total Bitcoin supply, according to BitcoinTreasuries.NET.
MicroStrategy remains the largest corporate holder of Bitcoin, with 580,250 BTC valued at roughly $60.9 billion. Other significant holders include Marathon Digital Holdings and Tesla, both of which possess over $1 billion in Bitcoin.
Just last week, the Japanese investment firm Metaplanet announced an ambitious plan to acquire 210,000 Bitcoin by the end of 2027.
As previously reported, digital asset companies are actively seeking capital in markets to finance considerable Bitcoin purchases, driven by the cryptocurrency’s recent surge to a record price of $111,965 last week.
This increase, which represents more than a 50% rise since early April, has triggered a flurry of listings and mergers, as companies strive to secure funding amid robust investor interest.
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