GameStop shares tank 22% after boosting raise to $2.25B for Bitcoin strategy

GameStop boosted its convertible note offering to $2.25 billion, fueling its Bitcoin treasury strategy and raising speculation about future crypto investments.

2417 Total views

1 Total shares

GameStop shares tank 22% after boosting raise to $2.25B for Bitcoin strategy

Video game and consumer electronics retailer GameStop increased its planned private convertible note offering to $2.25 billion, signaling a deeper commitment to building out its corporate Bitcoin treasury.

GameStop upsized its private convertible note offering to $2.25 billion on Thursday, with the sales of the notes expected to close on Tuesday.

The video game retailer expects net proceeds of about $2.23 billion, or $2.68 billion if the initial purchasers exercise their options to purchase additional notes in full.

The notes are set to mature on June 15, 2032. This marks a $500 million upsizing from the initial $1.75 billion note offering that GameStop announced on Wednesday.

The financing round comes two weeks after GameStop announced the purchase of 4,710 Bitcoin (BTC) valued at about $513 million on May 28, two months after the firm confirmed plans to create a BTC treasury strategy on March 2.

GameStop plans to use the $2.25 billion for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy,” which may signal more Bitcoin investments from the video game giant.

The video game retailer is already the world’s 11th largest corporate Bitcoin holder behind Galaxy Digital Holdings, Bitbo data shows.

*Strategy announces pricing of IPO stock. Source: Strategy*

Strategy, the world’s largest corporate Bitcoin holder, has also been leveraging debt financing strategies to buy more Bitcoin. On June 6, Strategy announced an upsized stock offering of nearly $1 billion, quadrupling the previous $250 million, Cointelegraph reported.

GameStop shares plunge 22%

GameStop’s shareholders are seemingly unhappy with the raise despite Bitcoin’s potential to bolster a company’s balance sheet.

Google Finance data shows that GameStop’s share price fell over 22% on Wednesday after the initial $1.75 billion round was announced.

*GameStop shares, 1-day chart. Source: Google* *Finance*

GameStop’s share price has been lacking upside momentum since the company reported mixed earnings results for the first quarter of 2025.

*GameStop’s net sales decline year-on-year. Source:* *GameStop*

GameStop reported Q1 2025 revenue of $732.4 million, lower than analyst estimates of $754.2 million and a 17% decline compared to its $881.8 million revenue for the same period last year. IG Bank attributed this to slowing physical game sales.