GameStop’s $1.75B Fundraising Plan Sparks Speculation Over More Bitcoin Buys

Highlights:

• GameStop plans a $1.75 billion private offering, possibly for more Bitcoin investments.
• Shares drop 5% as investors remain cautious despite Bitcoin acquisitions and profits.
• Company now holds 4,710 BTC, ranking 13th among corporate Bitcoin holders worldwide.

On June 11, video game retailer GameStop announced its plan to raise $1.75 billion through a private offering of convertible senior notes to investors. The company hasn’t clearly said why it’s raising the money. However, many believe it could be used to buy more Bitcoin as part of GameStop’s ongoing plan.

GameStop announced its intention to offer $1.75 billion of 0.00% convertible senior notes due June 15, 2032. The notes will be unsecured, bear no interest, and will not accrete in principal unless converted, redeemed, or repurchased earlier. Net proceeds are expected to be used…

— Wu Blockchain (@WuBlockchain) June 11, 2025

GameStop Plans Zero-Interest Notes, Leaves Bitcoin Use Unclear

GameStop will offer zero-interest notes to qualified institutional investors under Rule 144A of the Securities Act. The first buyers will also have 13 days to buy up to $250 million more if they want. These notes are not backed by any assets, won’t earn interest, and won’t grow in value. They will expire on June 15, 2032, unless GameStop decides to change that earlier. The company said it can pay back these notes in cash, stock, or both. The final details, like how many shares one note can be turned into, will be decided later.

Last month, GameStop bought 4,710 Bitcoin, but the company didn’t clearly state in its blog post if the new funds would be used to buy more Bitcoin or other digital currencies it has previously held. Instead, GameStop said the money will be used for general business needs, which may include investments that follow its updated investment policy and possible acquisitions. Back in March, the company changed its policy to allow Bitcoin to be used as a Treasury Reserve Asset.

GameStop Shares Drop Despite Bitcoin Buy and $1.75B Offering Plan

Even with the planned $1.75 billion private offering, GameStop’s stock has dropped sharply in the past day. Shares of GME are now trading at $28.55, down 5.31%, as news of the Bitcoin purchase hasn’t helped lift investor confidence.

The fall also came after a weak Q1 report. GameStop made less money than expected. The company is still struggling as more people move to digital and streaming games instead of buying physical ones. GameStop reported a $44.8 million profit in Q1. This marked a big improvement from the $32.3 million loss in Q1 2024. However, the company’s revenue dropped 17% to $732.4 million. It missed expectations, causing the stock to fall in after-hours trading on June 10.

GameStop Joins Bitcoin Race

In February, GameStop CEO Ryan Cohen gave a hint about buying Bitcoin. He posted a photo on X with Michael Saylor, the co-founder and chairman of Strategy (formally MicroStrategy). GameStop now holds 4,710 Bitcoin, making it the 13th biggest company with Bitcoin, based on data from BitcoinTreasuries.NET. Strategy is the biggest company holding BTC, worth over $63 billion. It started buying Bitcoin in 2020, and Saylor is well known for supporting it.

pic.twitter.com/wlOwEGli6n

— Ryan Cohen (@ryancohen) February 8, 2025

Several Bitcoin-focused firms are raising funds to buy more BTC. Last week, Trump Media secured $12B, likely for treasury Bitcoin purchases. Meanwhile, Metaplanet plans to raise $5.4B to boost its BTC buying spree.