GameStop Announces $1.75 Billion Bond Deal Amid Bitcoin Speculation Shares Drop 11%

GameStop, the video game retailer, has announced a new $1.75 billion bond deal, which has sparked speculation about its future Bitcoin purchases. The company proposed a private offering of convertible senior notes on Wednesday, with a 0% interest rate and a maturity date of June 2032. The offering is eligible only to qualified institutional buyers and includes an option for purchasers to buy an additional $250 million in notes within 13 days of the initial issuance.

Buyers can convert the debt, which carries no regular interest, into cash or common stock under specific conditions, or a combination of both at GameStop’s election. The proceeds from the offering will be used for general purposes, including “making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions.”

GameStop mentioned in a March release that its board has approved “to add Bitcoin as a treasury reserve asset.” The firm already disclosed purchasing 4,710 Bitcoin between May 3, 2025 and June 10, 2025, signalling that Bitcoin will be a part of its Q2 balance sheet. GameStop completed its initial convertible senior notes offering in April, with the $1.5 billion offering, the company had plans to use the proceeds in part to purchase BTC.

GameStop’s opaque investment strategy has sparked contemplation among observers that it might evolve as a multi-faceted holding corporation. Tetron Invest wrote on X that the company is “transitioning” to be a holding company. “They’re going to hold more than just Bitcoin.” While acquisitions remain the company’s priority, the lack of detailed capital allocation plans fuels theories about bitcoin diversification.

Following the announcement to raise more debt, GameStop (GME) shares plummeted over 11% in the extended session Wednesday. GME shares have declined 18% since May 28, after the company confirmed its first Bitcoin buy. The trend contrasts with other firms that have shown a significant increase in their shares after announcing BTC acquisitions.