GameStop gets $1.5 billion to buy Bitcoins
GameStop invests $1.5 billion in Bitcoin after convertible note sale.
GameStop Corporation (NYSE: GME) has completed a $1.5 billion convertible debt offering, with proceeds earmarked in part for Bitcoin acquisitions, marking the video game retailer’s latest strategic shift into digital assets.
The move follows board approval to allocate funds from the offering—and its sizable cash reserves—toward Bitcoin and stablecoin purchases under the company’s newly revised Investment Policy, reports Cointelegraph.
Convertible Notes Signal Broader Strategy Shift
Initially slated to raise $1.3 billion, GameStop increased the offering by $200 million after investors opted for additional notes, according to the company’s April 1 SEC filing. The convertible notes, which mature on April 1, 2030, can be exchanged into equity at a conversion rate of 33 shares per $1,000 principal amount.
GameStop stated that proceeds will be used for “general corporate purposes, including the acquisition of Bitcoin,” aligning with a growing number of public companies incorporating BTC into their treasury strategies.
Despite the high-profile nature of the announcement, GME shares saw a modest response, closing up 1.34% at $22.61 on April 1 and rising slightly by 0.5% after hours, according to Google Finance data.
Mixed Market Response Reflects Lingering Concerns
Investor enthusiasm was initially stronger when GameStop first revealed its Bitcoin plan on March 25, causing a 12% surge in share price. However, the stock quickly reversed course, falling nearly 24% the following day. Analysts attributed the volatility to shareholder caution over GameStop’s core business struggles, as it continues to navigate a declining physical retail model in a digital gaming era.
A New Chapter in the Meme Stock Saga
GameStop’s pivot to digital assets comes years after its legendary 2021 short squeeze, which saw its shares skyrocket over 1,000% in a single month as retail traders upended Wall Street short sellers. The company later experimented with Web3, launching a crypto wallet and NFT marketplace, though both efforts were wound down in late 2023 amid regulatory uncertainty.
Still, with $4.77 billion in cash reserves as of February 1—up from $921.7 million the previous year—GameStop now has flexibility to pursue riskier, long-term investments like Bitcoin. The move places it in the footsteps of companies like Strategy (formerly MicroStrategy), whose executive chairman Michael Saylor helped popularize the corporate BTC treasury model.
Looking Ahead
While GameStop is entering the Bitcoin space relatively late compared to institutional peers, its entry underscores the continued relevance of BTC in corporate finance. Whether the strategy proves to be a visionary hedge or a distraction from deeper operational challenges remains to be seen.
Recently we wrote, that 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.
