GameStop Finishes $1.5B Raise to Add Bitcoin to Its Balance Sheet

Video game retailer GameStop Corporation (GME) has completed a $1.5 billion convertible debt offering, with a portion of the proceeds earmarked for buying Bitcoin.

The offering was initially set to raise at least $1.3 billion, but investors opted to purchase an additional $200 million in aggregate principal amount of notes, GameStop stated in an April 1 SEC filing.

“The company expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the Company's Investment Policy,” GameStop added.

The convertible notes, which can later be exchanged for equity, are scheduled to mature on April 1, 2030, unless converted, redeemed, or repurchased earlier. According to the filing, the initial conversion rate will be 33 shares of Common Stock per $1,000 principal amount of notes.

Despite the announcement, GameStop shares (GME) showed minimal movement following the closing of the debt offering. GME closed April 1 at $22.61, up 1.34%, with a 0.5% after-hours increase, per Google Finance data.

Stock Performance and Market Reaction

GameStop’s stock surged nearly 12% to $28.36 on March 26, the day after the company revealed its Bitcoin BTCUSD investment plan. However, the excitement was short-lived as GME shares plunged 24% the next day, closing at $21.68.

Market analysts believe the lukewarm reception reflects concerns over GameStop's underlying business model, rather than excitement over its Bitcoin acquisition.

GameStop Joins the Bitcoin Movement

On March 25, GameStop confirmed that its board approved plans to invest in Bitcoin and US-dollar-pegged stablecoins, using the funds from the convertible notes and its existing cash reserves, which stood at $4.77 billion as of February 1—a sharp increase from $921.7 million a year earlier, per its 2024 Q4 financial statements.

Although GameStop is a latecomer in adding Bitcoin to its corporate balance sheet, it follows a trend popularized by Michael Saylor’s strategy of using BTC as a treasury reserve asset.

Previously, GameStop made a push into crypto with a crypto wallet for users, but regulatory uncertainty led to its shutdown in November 2023.

Additionally, GameStop remains a historic example of the meme stock movement, after its 2021 short squeeze, which saw GME surge over 1,000% in a single month, as retail traders outmaneuvered hedge funds that were shorting the stock.

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