GameStop Completes $1.5B Convertible Note Raise to Fund Bitcoin Buys
GameStop Corporation (GME) has completed a $1.5 billion convertible debt offering, with a portion of the proceeds to be used for Bitcoin and stablecoin investments, as revealed in an April 1 SEC filing. Initially aiming to raise $1.3 billion, the offering was expanded after additional investor interest added another $200 million in principal notes.
“The company expects to use the net proceeds… including the acquisition of Bitcoin in a manner consistent with the Company’s Investment Policy,” the filing stated.
The move follows GameStop’s board approval on March 25 to begin holding Bitcoin and U.S.-dollar-pegged stablecoins using proceeds from the offering and cash reserves, which have surged to $4.77 billion as of Feb. 1 — up from just $921.7 million a year prior.
Note Terms and Market Response
The convertible notes, set to mature on April 1, 2030, may be converted into GME shares at a rate of 33 shares per $1,000 principal.
GameStop’s stock saw little immediate movement following the announcement:
- Closed April 1 at $22.61, up 1.34%.
- Saw only a 0.5% after-hours increase, per Google Finance data.
However, shareholder reaction was mixed:
- GME spiked nearly 12% to $28.36 after the Bitcoin investment plan was unveiled on March 26.
- The next day, shares plunged 24% to $21.68, as concerns over the company’s core business model reemerged.
Analysts attributed the selloff to investor skepticism around whether the Bitcoin move could offset structural challenges in GameStop’s retail strategy.
Source: Google Finance
Following Saylor’s Strategy
GameStop now joins the growing list of public companies adding Bitcoin to their balance sheets, following in the footsteps of Michael Saylor’s Strategy, which recently surpassed 500,000 BTC. Though GameStop is late to the game, the company’s crypto pivot reflects a broader trend of corporate treasury diversification into digital assets amid uncertain macroeconomic conditions. With billions in cash and fresh convertible capital, the company appears ready to test Bitcoin’s long-term upside — though market reaction suggests the jury’s still out.
