GameStop Raises $2.7 Billion to Buy Bitcoin, Following MicroStrategy's Strategy

GameStop, the renowned video game retailer, has recently made significant strides into the cryptocurrency realm. The company has successfully raised over $4 billion through the sale of convertible notes this year, with a substantial portion of this capital designated for the creation of a Bitcoin treasury. This move highlights GameStop's dedication to diversifying its financial portfolio and embracing the rising trend of digital assets.

In March 2025, GameStop issued $1.48 billion in convertible notes, a type of debt that investors can later convert into equity. According to a filing with the SEC, the proceeds from this issuance were intended for "general corporate purposes, including the acquisition of Bitcoin." This promise materialized in May when GameStop purchased 4,710 BTC, valued at approximately $513 million at the time, marking the company's first official Bitcoin buy.

GameStop's commitment to Bitcoin deepened this month with a second convertible note offering, raising $2.25 billion. Investors quickly exercised an option to purchase an additional $450 million, bringing the total raised to $2.7 billion in June alone. This strategic move mirrors that of MicroStrategy, which has used corporate debt to accumulate over 200,000 BTC. MicroStrategy's stock now effectively trades as a Bitcoin ETF with leverage, showcasing the potential benefits of such a strategy.

GameStop's board views Bitcoin as a potential lifeline for the company, which has faced years of declining retail performance. The retailer sees crypto as a hedge against market volatility and a growth opportunity, or possibly both. If GameStop allocates most of its new capital to BTC, its holdings could rival MicroStrategy's on a relative basis, representing nearly a third of GameStop’s total market cap.

While GameStop is currently a retailer with a speculative treasury strategy, the company's future could evolve significantly. If Bitcoin appreciates and GameStop continues to issue debt to buy more, it could transform into a crypto proxy, a high-beta Bitcoin stock, or even a new kind of hybrid public company. This pivot reflects GameStop's efforts to adapt to the evolving landscape of the video game industry, which is becoming increasingly digital. By focusing on the trading-card business and digital assets, GameStop aims to capitalize on emerging trends and maintain its relevance in a rapidly changing market.

GameStop's initiative has also inspired other entities to follow suit. For instance, a mixed martial arts league has announced plans to purchase $230,000 worth of Bitcoin in the next month, with intentions to invest up to $2 million within the next six months. This league aims to emulate the success of MicroStrategy by adopting a similar investment strategy.

Despite raising $2.7 billion to buy more Bitcoin, the market has expressed skepticism about GameStop's strategy, leading to a decline in its share prices. This reaction underscores the volatility and uncertainty that often accompany new and unconventional investment strategies. However, GameStop's long-term vision and strategic diversification efforts are poised to drive future growth and innovation, positioning the company at the forefront of the digital asset revolution.