GameStop Raises $2.7 Billion for Bitcoin Investments Amid Volatility

GameStop, the prominent video game retailer, has recently raised an additional $450 million through the sale of follow-up zero-coupon convertible notes. This latest fundraise brings the total amount secured from the offering to approximately $2.7 billion. The funds are earmarked for general business needs and strategic investments, including the potential acquisition of more Bitcoin. This move comes as GameStop continues to explore the integration of Bitcoin into its treasury strategy, following an initial purchase of 4,710 BTC in May 2025 for about $495 million. The company had previously raised $1.3 billion in March to support this Bitcoin acquisition.

The latest fundraise positions GameStop with substantial financial flexibility, allowing it to pursue further investments in Bitcoin and other strategic initiatives. This development is part of a broader trend where companies are increasingly adopting Bitcoin as a treasury asset, inspired by the success of firms like Strategy, formerly known as MicroStrategy. The regulatory environment in the United States, including the passage of the GENUIS Act and a more accommodating stance from the SEC, has also encouraged corporate Bitcoin adoption.

However, the path to success in the cryptocurrency landscape is not without challenges. While GameStop's initial announcement of Bitcoin incorporation into its treasury led to a surge in its shares, the company has since faced volatility, with its stock falling more than 25% over the past month. This underscores the risks and uncertainties associated with a crypto-centric strategy.

GameStop's share price has fallen sharply since the firm started making Bitcoin-related moves. Shares of GameStop (GME) fell more than 10% to a level of $30.73 after it announced its first purchase of Bitcoin in May. They fell again when it announced its second convertible notes offering, which has now been bumped to nearly $2.7 billion after its upsizing and subsequent greenshoe exercise. Shares were down marginally earlier Wednesday, but finished the trading day up about 1%. Nevertheless, at $23.55, GME is down about 23% year-to-date.

GameStop’s stock skyrocketed during the meme stock phenomenon that pitted Wall Street against Redditors and retail investors in a short-squeeze battle. The firm has participated in crypto beyond Bitcoin, attempting to build an Ethereum NFT marketplace before ditching it in early 2024. It also ditched its NFT wallet in 2023, citing regulatory uncertainty in both instances.

GameStop first hinted at its intentions to buy BTC in March, highlighted by a photo between its CEO Ryan Cohen and Bitcoin proponent and Strategy (formerly MicroStrategy) Chairman Michael Saylor. Strategy holds nearly $64 billion worth of Bitcoin, and pioneered the crypto treasury model that GameStop has since adopted. Since then, GameStop has utilized convertible notes offerings to raise funds for potential Bitcoin additions, following in the path that Saylor and Strategy have outlined for Bitcoin treasury companies.

Yet while Strategy routinely adds to its Bitcoin stack, typically announcing weekly buys, GameStop’s future with the leading cryptocurrency is a bit less obvious. In a recent interview, Cohen said the firm was “not going to call our shots in advance” referring to Bitcoin purchases, and added that the firm is “not following anyone else's strategy."