GameStop Plans $1.3 Billion Fundraising to Buy Bitcoin

Highlights:

• GameStop plans to raise $1.3 billion through convertible notes for Bitcoin purchases.
• The offering includes 0.00% Convertible Senior Notes due April 1, 2030.
• GameStop will determine the conversion price using a volume-weighted average price method.

GameStop (NYSE: GME) announced yesterday that it plans to raise $1.3 billion by selling convertible notes in a private deal. The company will use the money for general business needs, including buying Bitcoin. This decision comes a day after GameStop updated its investment policy to allow Bitcoin as a treasury reserve asset. 

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GameStop is making a big financial move by adding Bitcoin to its strategy. Michael Saylor, known for this approach, met with GameStop CEO Ryan Cohen last month. His influence likely played a role in GameStop’s decision to use Bitcoin as a reserve asset.

BREAKING: GameStop $GME to raise $1.3 billion to buy #Bitcoin pic.twitter.com/2sO1ZplK2V

— Bitcoin Magazine (@BitcoinMagazine) March 26, 2025

Details of GameStop’s Convertible Notes Offering

The offering includes $1.3 billion worth of 0.00% Convertible Senior Notes. The company will also give initial buyers the option to purchase up to $200 million more in notes within 13 days of the first sale. The notes will be unsecured and won’t earn regular interest or increase in value over time. The notes will be due on April 1, 2030, unless they are converted, redeemed, or bought back earlier.

When converted, GameStop can choose to pay in cash, shares of its Class A common stock, or a mix of both. The initial conversion rate and other details will be set when the pricing is finalized.

The company will set the initial conversion price of its stock by calculating an average price. To do this, it will use the U.S. composite volume-weighted average price (VWAP), which considers both price and trading volume. The calculation will only include trades made between 1:00 p.m. and 4:00 p.m. (Eastern Daylight Time) on the pricing date. In simple terms, the company is using a specific time window and method to determine a fair starting price for conversion.

GameStop stressed that neither the notes nor any shares of common stock that may be issued upon conversion have been or will be registered under the Securities Act of 1933 or any state securities laws. Therefore, they cannot be offered or sold in the United States unless they are registered or qualify for an applicable exemption. The company warned that it may not complete the offering as planned or at all.

The company explained: 

“Gamestop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin in a manner consistent with Gamestop’s Investment Policy.”

GameStop’s Bitcoin Strategy Sparks 15% Stock Surge

GameStop’s Bitcoin strategy boosted its shares by 15.2% to $29.19 on Wednesday. J.P. Morgan data shows it was the seventh most traded stock among U.S. retail investors at 10 a.m. ET that day. Managing director at Wedbush, Michael Pachter, told Reuters that GameStop “clearly understands” its investors. Pachter also noted that GameStop’s strategy has shifted about six times in three years, and its plan to accumulate Bitcoin mirrors MicroStrategy’s approach.

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