GameStop Eyes More Bitcoin With $1.75B Raise; Stock Falls in After-Hours

The offering, which targets qualified institutional buyers under Rule 144A of the Securities Act, consists of zero-coupon convertible notes that will mature on June 15, 2032. GameStop has also granted the initial purchasers a 13-day option to buy up to an additional $250 million in notes, which could push the total raise to $2 billion. The proceeds, according to the company’s official filing, will be used for “general corporate purposes,” with an emphasis on investments aligned with its newly revised Investment Policy.

The fundraising announcement comes just weeks after GameStop revealed a major Bitcoin acquisition. Between May 3 and June 10, 2025, the company disclosed that it had purchased 4,710 BTC for approximately $513 million. This purchase was financed through a separate $1.3 billion convertible note sale conducted in April.

GameStop’s board formally amended its investment policy in March 2025 to include Bitcoin as a permissible treasury reserve asset, joining the ranks of corporations like Strategy and Japanese firm Metaplanet — all of which have adopted digital assets as part of their balance sheet strategies.

While GameStop has not confirmed that the new $1.75 billion will go toward purchasing additional Bitcoin, the language in its announcement leaves the door open. Analysts and investors alike believe the move is likely, especially given CEO Ryan Cohen’s growing interest in digital assets and the company’s stated ambition to “diversify and modernize” its capital allocation strategy.

Despite the bold move, the market response has been lukewarm. GameStop’s shares dropped from $28.51 to $25.34 following the announcement. Investors appeared concerned about the dilution risk from the convertible notes and the uncertainty surrounding further Bitcoin exposure, especially amid lingering volatility in crypto markets.

Financial analysts have expressed a range of views. Some see GameStop’s approach as visionary — leveraging strong cash positions to diversify into high-upside assets like Bitcoin. Others warn that the strategy could backfire if Bitcoin's price declines or regulatory pressures intensify.

For GameStop, the transition from a legacy brick-and-mortar video game retailer to a tech-forward asset allocator is nothing short of dramatic. Once the face of the 2021 retail trading frenzy, the company is now attempting to reinvent itself through aggressive capital moves that blend traditional finance and the digital asset economy.

All eyes are now on whether GameStop will use a portion — or all — of the newly raised funds to deepen its Bitcoin exposure. Should the company continue acquiring BTC in large quantities, it could soon rival major corporate holders and further solidify its place in the growing narrative around institutional crypto adoption.

The notes are expected to settle on or about June 17, 2025, and convert into shares under certain conditions. If Bitcoin’s price continues to rise, GameStop’s bold bet could turn into one of the most unconventional but profitable pivots in corporate finance history.