- GameStop plans $1.75B convertible note raise after $516M Bitcoin purchase.
- Proceeds may support continued BTC buying under current investment policy.
- GME joins firms like Trump Media and Metaplanet in debt-funded BTC strategies.
GameStop Corporation has announced plans to raise $1.75 billion through a private offering of convertible senior notes, a move coming just one day after disclosing a major Bitcoin acquisition. The video game retailer, which recently purchased 4,710 BTC for approximately $516 million, has not confirmed the intended use of the proceeds. However, the timing has sparked market speculation that the capital will support the firm’s continued investment in Bitcoin.
According to a company statement, the offering will be limited to “qualified institutional buyers” under Rule 144A of the Securities Act. The total raise includes a base $1.75 billion offering, with the option for an additional $250 million in notes within 13 days of the initial issuance. These convertible senior notes will mature in 2032 and will not bear periodic interest.
GameStop specified that funds from the issuance will be used for “general corporate purposes.” This may include investments in line with the company’s current investment policy. The policy was not detailed. However, the company’s recent $516 million Bitcoin acquisition has triggered assumptions that the firm will continue building its BTC holdings.
Market Reaction and Q1 Performance
The company’s stock, traded under the ticker GME, declined 5% to $28.55 following the announcement. The downward trend follows a Q1 2025 earnings report that showed weaker-than-expected results. GameStop continues to face headwinds in its core retail gaming segment. This is driven by increased consumer adoption of digital downloads and streaming-based gaming platforms.
The recent Bitcoin purchase signals GameStop’s entrance into a broader corporate trend where firms are allocating major capital toward digital assets. The company has not yet outlined further acquisition targets or confirmed future BTC purchases, but the sizable funding effort shows a possible continuation of the strategy.
GameStop’s move mirrors a growing number of corporations seeking exposure to Bitcoin through direct purchases funded by debt. Other firms have recently followed similar paths. Trump Media raised $12 billion last week, while Metaplanet is currently working to secure $5.4 billion to expand its Bitcoin holdings. Strive Asset Management, Strategy, and Semler Scientific have also issued debt in connection with BTC-related investments.
