GameStop, the prominent video game retailer, has unveiled plans for a substantial bond offering worth $1.75 billion, suggesting a potential expansion into Bitcoin investments. The company, which has gained notoriety as a meme stock, announced this proposed private offering of convertible senior notes on Wednesday.
The offering is structured with a 0% interest rate, and the notes are set to mature in June 2032. Only qualified institutional buyers will be eligible for this offering, which also includes an option for buyers to acquire an additional $250 million in notes within 13 days following the initial issuance.
These convertible notes, which do not accrue regular interest, can be converted into cash or common stock under certain conditions, or a combination of both at GameStop’s discretion, as noted in their release.
Proceeds to Support Bitcoin Investments
According to the Texas-based retailer, the funds raised from this offering will be utilized for general corporate purposes, including “making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions.”
Earlier in March, GameStop’s board gave the green light to include Bitcoin as a treasury reserve asset.
The firm has already acknowledged the purchase of 4,710 Bitcoin between May 3, 2025, and June 10, 2025, indicating that this cryptocurrency will feature in its Q2 balance sheet.
@gamestop bought 4,710 Bitcoin in cash between May 3 and June 10, deepening its crypto pivot after board approval in March to adopt BTC as a treasury asset.#GameStop #BitcoinTreasury https://t.co/dmrmxkm7Ix
— Finance Newso.com (@Finance Newso) June 11, 2025
GameStop had previously raised $1.5 billion through an initial convertible senior notes offering in April, partially intending to use those proceeds for Bitcoin purchases.
Shareholder Response to the Bond Offering; Stock Drops 11%
GameStop’s ambiguous investment strategy has led analysts to speculate that the company could be transitioning into a multifaceted holding corporation.
Tetron Invest commented on X, indicating that GameStop appears to be “transitioning” to a holding company model. “They’re going to hold more than just Bitcoin,” the firm suggested.
GameStop is transitioning to be a holding company, and they’re going to hold more than just Bitcoin.
The new convertible offering strongly points to this, here’s why I think that’s the case pic.twitter.com/9bYOLArL1S
— Tetron (@TetronInvest) June 11, 2025
While acquisitions are reportedly a key focus for GameStop, the absence of detailed plans for capital allocation has sparked speculation about diversifying into Bitcoin.
Following the announcement of the additional debt offering, shares of GameStop (GME) dropped over 11% in after-hours trading on Wednesday.
Since the company confirmed its initial Bitcoin purchase on May 28, GME shares have fallen 18%, contrasting sharply with other companies that have seen their stock values rise significantly following Bitcoin-related announcements.
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