GameStop plans $1.3 billion Bitcoin purchase
GameStop to buy Bitcoin
GameStop shares jumped nearly 12% on March 26 after the company revealed plans to purchase Bitcoin using proceeds from a $1.3 billion convertible notes offering.
The announcement positions GameStop among a growing cohort of public firms incorporating digital assets into their corporate treasuries.
The offering, consisting of convertible senior notes — debt that can later be exchanged for equity — is intended to fund general corporate initiatives, including the acquisition of Bitcoin. “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,” the company said in a statement.
The move follows a March 25 disclosure that GameStop may allocate corporate cash or future debt to acquire Bitcoin and USD-pegged stablecoins. As of Feb. 1, the company reported $4.77 billion in cash reserves, up from $921.7 million a year earlier.
GameStop’s financial turnaround and crypto pivot
GameStop’s Q4 2024 net income reached $131.3 million, up from $63.1 million in the same quarter a year prior, despite a year-over-year net sales drop of $511 million. The company has aggressively reduced costs by closing 590 stores across the U.S., signaling a strategic shift in its operations and long-term outlook.
The retail firm became a cultural icon during the 2021 meme stock frenzy, when retail traders triggered a historic short squeeze. Its latest pivot into Bitcoin may again test the boundaries of traditional finance and investor expectations.
A growing corporate trend
GameStop joins companies like Strategy (formerly MicroStrategy), Metaplanet, and Semler Scientific, all of which saw substantial stock gains after announcing Bitcoin purchases. Strategy’s stock rose 3200% since adopting Bitcoin in 2020, while Metaplanet's soared 4800%, attracting new investor interest and a 6300% increase in market cap.
According to CoinGecko, 32 publicly traded companies now hold Bitcoin on their balance sheets — a figure expected to grow as institutional adoption accelerates.
Meanwhile, Bitcoin mining stocks plummet as Microsoft abandons data center expansion.
