GameStop, the video game retailer, has finalized a $1.5 billion offering of convertible senior notes, intending to allocate the proceeds toward acquiring Bitcoin for its treasury.
The transaction, concluded on April 1, 2025, yielded $1.48 billion after expenses, as detailed in the company’s filing with the Securities and Exchange Commission. Initially, GameStop set out to raise $1.3 billion to enhance its treasury assets with Bitcoin.
The sale exceeded expectations by generating an additional $200 million in notes. The company has indicated that the funds would support general corporate initiatives, including the purchase of Bitcoin.
GameStop’s move to invest in Bitcoin aligns with a broader trend of publicly traded companies diversifying their balance sheets by incorporating the leading cryptocurrency.
In a manner similar to Strategy (previously known as MicroStrategy), which possesses the largest treasury of Bitcoin, GameStop is utilizing convertible senior notes to finance its Bitcoin acquisitions. Strategy currently owns over 500,000 Bitcoin, valued at more than $45 billion.
The board authorized the investment in Bitcoin and US-dollar-pegged stablecoins on March 25. This initiative will be backed by the company’s cash reserves of $4.77 billion. By adding Bitcoin to its assets, GameStop aims to bolster its financial standing and extend its reach beyond its core retail operations.
Nonetheless, this new direction has sparked some concerns. A recent comment from Bret Kenwell, an analyst at eToro, raised the question, “If Bitcoin is going to be the pivot, where does that leave everything else?”
GameStop’s decision to close several retail locations this year has highlighted challenges within its primary business model, which adds to these concerns. Despite the news, GameStop’s stock experienced only a modest increase, closing the day with a gain of just 1.34%.