GameStop (GME) recently increased the size of its planned convertible note sale from $1.75 billion to $2.25 billion, with an option to raise up to $2.7 billion. The notes, due in 2032 and not bearing interest, will be sold privately to large institutional investors. The company expects to receive around $2.23 billion after fees, or $2.68 billion if the option is exercised. These funds are intended for general business needs including investments and potential acquisitions.
Although GameStop has not explicitly confirmed plans to allocate these proceeds to Bitcoin (BTC), the move follows its earlier $1.5 billion convertible raise in April, part of which was used to purchase 4,710 BTC worth approximately $512 million at the time, making GameStop the 13th largest corporate Bitcoin holder.
The announcement of the original $1.75 billion offering triggered a sharp drop in GameStop stock, falling over 20% in after-hours trading on June 11, with continued declines amid investor concerns about dilution and the company's pivot towards digital assets. Despite the board's unanimous support for aligning with Bitcoin-focused strategies, the stock’s reaction showed skepticism about whether crypto exposure can compensate for declining core revenues and retail footprint.
GameStop’s broadened convertible note offering provides more financial flexibility as it seeks to recover from a challenging retail environment while continuing its digital asset accumulation strategy, mirroring moves by other public firms investing heavily in Bitcoin.