GameStop Upsizes Convertible Note Offering to $2.25 Billion for Bitcoin Treasury

GameStop, a prominent video game and consumer electronics retailer, has significantly increased its planned private convertible note offering to $2.25 billion. This move is part of the company's strategy to bolster its corporate Bitcoin treasury, signaling a deeper commitment to cryptocurrency investments. The upsizing of the offering from the initial $1.75 billion announced just a day earlier marks a substantial increase of nearly $500 million. The notes are expected to mature on June 15, 2032, with the sales anticipated to close on June 17. GameStop aims to raise approximately $2.23 billion from this financing round, or potentially $2.68 billion if the initial purchasers fully exercise their option to buy additional notes.

This financing round comes on the heels of GameStop's recent purchase of 4,710 Bitcoin (BTC) valued at around $513 million on May 28. The company had previously confirmed its plans to establish a Bitcoin treasury strategy in March. The funds raised from the convertible note offering are earmarked for "general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy." This suggests that the company may continue to invest in Bitcoin, further solidifying its position in the cryptocurrency market.

GameStop's aggressive move into Bitcoin has drawn mixed reactions from shareholders. Despite the potential benefits of Bitcoin for a company's balance sheet, GameStop's share price plummeted by over 22% on June 12 following the announcement of the upsized note offering. This decline reflects investor skepticism and concerns about the company's strategic direction. GameStop's share price has been struggling to gain momentum since the company reported mixed earnings results for the first quarter of 2025. The retailer's net sales for the year-to-date period stood at $732.4 million, falling short of analyst estimates of $754.2 million and marking a 17% decline compared to the same period last year. This downturn has been attributed to slowing physical game sales.

GameStop's decision to increase its Bitcoin holdings aligns with a broader trend among corporations exploring cryptocurrency as a strategic asset. The company is already the world’s 11th largest corporate Bitcoin holder, underscoring its significant presence in the cryptocurrency space. Other major corporations have also leveraged debt financing strategies to acquire more Bitcoin, indicating a growing acceptance of cryptocurrency as a viable investment option for large enterprises.