GameStop is back in the headlines with a surprise strategic pivot: the company announced plans to raise $1.3 billion through a convertible debt offering—and it intends to use a portion of the funds to purchase Bitcoin. The move positions the legacy video game retailer, once best known for its brick-and-mortar stores and meme stock saga, squarely in the middle of the digital asset arena.
According to a statement released Wednesday, the capital will be raised through a private placement of convertible senior notes issued at 0% interest, marking its most direct financial bet yet on Bitcoin. The debt will be structured to allow maturation in 2030, giving investors the option to convert their holdings into equity over time, without the company bearing traditional coupon costs.
The move, announced just one day after GameStop revealed its intention to allocate part of its treasury to Bitcoin, reflects a fast-tracked strategy under CEO Ryan Cohen that mirrors tactics used by MicroStrategy’s Michael Saylor—who famously issued billions in convertible debt to amass the largest corporate Bitcoin treasury to date.
“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 statement reads.
In addition to the core offering, GameStop has included an upsized greenshoe option that would allow underwriters to purchase up to $200 million more in notes, potentially pushing the total raise above $1.5 billion. While the company hasn’t disclosed how much of the funds will go directly into Bitcoin, the offering structure and timing make it clear that digital assets are becoming a central feature of the retailer’s capital management strategy.
This zero-coupon approach reduces near-term debt servicing costs while maximizing future optionality, allowing the company to align its balance sheet with anticipated long-term value from both Bitcoin and its own equity.
Convertible Debt: Risk, Reward, and Volatility
GameStop’s use of convertible bonds adds a layer of complexity to its financial strategy. These instruments allow bondholders to convert debt into stock at a predetermined price, offering upside if the company’s share value appreciates. For GameStop, this represents a way to raise capital without immediately diluting existing shareholders; a method often favored by firms with high stock volatility or uncertain cash flow projections.
The move also revives questions about the company’s long-term business model. After years of transformation efforts, including shifts toward e-commerce, NFT initiatives, and leadership changes, GameStop is still in the process of defining its post-retail identity. A Bitcoin allocation adds to the company’s speculative edge, but it may also draw scrutiny from investors and regulators seeking more clarity on financial risk.
GameStop Joins the Bitcoin Debt Club, Market Reacts with Volatility
GameStop’s decision to raise $1.3 billion through convertible debt places it in a growing list of public companies turning to leveraged financing as a pathway to Bitcoin exposure. Firms like MicroStrategy, Semler Scientific, MARA Holdings, and Riot Platforms have all deployed similar strategies, issuing debt to build sizable Bitcoin holdings as part of their long-term treasury plays.
The move quickly stirred market reactions. GME shares slipped 7% in after-hours trading, retracing gains from an earlier 11.7% rally during the regular session. Meanwhile, Bitcoin briefly rebounded on the news, climbing back to $87,000 after dipping near $86,000 earlier in the day, highlighting the asset’s sensitivity to new sources of institutional demand.
While GameStop’s announcement was sudden, there were hints in recent weeks. In February, CEO Ryan Cohen posted a photo with MicroStrategy’s Michael Saylor, widely seen as a symbolic endorsement of the Bitcoin treasury strategy. Saylor himself responded to GameStop’s latest move with a welcome note on X: “Welcome to Team Bitcoin.”
This isn’t GameStop’s first brush with crypto. The company previously launched an NFT marketplace in 2022, only to shutter it two years later amid growing regulatory uncertainty. Now, with Bitcoin on its balance sheet and convertible debt on the table, GameStop is taking a bolder, more high-stakes approach—one that mirrors the tactics of crypto-forward corporations betting on digital assets to redefine long-term value.
Quick Facts:
- GameStop is raising $1.3 billion via convertible debt and plans to allocate part of the funds toward Bitcoin purchases.
- The notes, due in 2030, offer bondholders the option to convert their holdings into equity.
- This move places GameStop among a growing list of public companies adopting Bitcoin as part of their treasury strategy.
