GameStop, the video game retailer, has completed a $1.5 billion offering of convertible senior notes, with plans to use the funds to buy Bitcoin for its treasury.
The sale, completed on Apr. 1, 2025, raised $1.48 billion after fees, according to the company’s filing with the Securities and Exchange Commission. GameStop was initially aiming to raise $1.3 billion amid plans to add Bitcoin to its list of treasury assets.
The sale surpassed expectations, with an extra $200 million in notes sold. The company stated the funds will be used for general corporate purposes, including Bitcoin purchases.
GameStop’s decision to invest in Bitcoin is part of a larger trend whereby publicly traded companies are diversifying their balance sheets by holding the most popular cryptocurrency.
Similar to Strategy (formerly MicroStrategy), which holds the largest Bitcoin treasury, GameStop has adopted the use of convertible senior notes to fund Bitcoin purchases. Strategy currently holds more than 500,000 Bitcoin, which is valued at over $45 billion.
The plan to invest in Bitcoin and US-dollar-pegged stablecoins was approved by GameStop’s board on Mar. 25. This new venture will be financed by the company’s $4.77 billion cash reserves. By including Bitcoin in its holdings, GameStop hopes to improve its financial position and expand beyond its primary retail business.
However, concerns have been raised about this new direction. Bret Kenwell, an analyst at eToro, recently remarked, “If Bitcoin is going to be the pivot, where does that leave everything else?”
GameStop’s decision to shut down several locations this year has exposed issues in its key retail business, adding to this concern. Despite the news, GameStop’s stock didn’t rise much, closing the day’s trading at a slight 1.34% increase.
