GameStop Raises $450 Million for Bitcoin Reserve, Shares Dip 0.60%

GameStop has recently raised $450 million through a follow-on convertible note sale, marking a significant move into the cryptocurrency space. The gaming retailer's shares dipped slightly by 0.60% to $23.15 following the announcement, indicating investor uncertainty about the company's new Bitcoin-focused treasury strategy. The additional cash came from a follow-on offering of zero-coupon convertible senior notes, as revealed in a new Securities and Exchange Commission filing. This new raise brings GameStop’s total from its June convertible debt to $2.7 billion. These notes, due in 2032, can be converted into GME Class A shares at $28.91, which is a 32.5% premium over the initial day offering price.

GameStop plans to use the funds to support general corporate needs, with a significant portion allocated to growing their Bitcoin reserve. The company initially entered the crypto world in March 2025 by purchasing 4,710 Bitcoins for about $513 million, with Bitcoin priced around $109,000 at the time. Despite market fluctuations, the holdings are still valued over $500 million, demonstrating the company's confidence in cryptocurrency. This move reflects a strategic shift similar to that of other firms like MicroStrategy, which have adopted Bitcoin as a treasury asset. However, since the purchase, GameStop’s stock has dipped by around 24%, raising concerns among investors about the risks associated with such a bold shift.

GameStop's CEO, Ryan Cohen, has stated that the company's decision to invest in Bitcoin is aimed at protecting against significant economic risks. Cohen believes that the decentralized design of Bitcoin could serve as a modern hedge in uncertain times, echoing a growing trend among companies turning to crypto for stability. With this bold move, GameStop is clearly looking beyond its core gaming business and into the future of finance. However, with sales under high pressure and the core business still facing challenges, GameStop’s crypto pivot adds both risk and intrigue to its strategic direction.

Following a successful $2.25 billion offering closed on June 17, GameStop has raised an additional $450 million by fully exercising its Greenshoe option on June 23. These convertible notes, set to mature in June 2032, can be exchanged for Class A shares of a 32.5% premium over the June 12 average. The deal could add over 20 million new shares to GameStop’s equity base, expanding its financial flexibility for future plans. This $450 million raise marks a bold turn towards the crypto world, signaling the company's growing commitment to Bitcoin as a strategic asset. While this move aligns with trends seen in other firms, investor reactions remain cautious, reflecting the uncertainty surrounding GameStop's new direction.