GameStop’s plan to raise another $1.75B fuels speculation of further Bitcoin acquisitions

GameStop Corp. plans to raise $1.75 billion through a private offering of convertible senior notes due 2032, as the company explores digital asset investments, including potential Bitcoin acquisitions, under its updated investment strategy, according to a June 11 press release.

The zero-coupon notes will be offered to qualified institutional buyers under Rule 144A of the Securities Act, with an option for initial purchasers to buy an additional $250 million within 13 days of issuance.

The unsecured notes will not bear interest, will not accrete, and will mature on June 15, 2032, unless converted, redeemed, or repurchased earlier.

GameStop said it may settle conversions in cash, stock, or a combination. The conversion rate and other final terms will be determined at the time of pricing.

Bitcoin treasury accumulation

While GameStop did not disclose specific investment targets, it stated that proceeds will be used for “general corporate purposes,” including acquisitions and investments aligned with its Investment Policy, which permits the company to allocate capital to Bitcoin and other blockchain-based assets.

The move echoes similar strategies by companies such as MicroStrategy, which used convertible debt to amass over 200,000 BTC, turning the cryptocurrency into a strategic treasury reserve.

Market speculation around GameStop’s potential Bitcoin exposure has grown in recent weeks, particularly after executive reshuffles and broader engagement with the digital asset space.

The firm previously raised $1.3 billion through another convertible note offering, which led to an acquisition of 4,710 BTC for its treasury last month.

GameStop has previously hinted at ambitions beyond retail gaming, exploring digital wallets, NFTs, and decentralized infrastructure. This latest financing round could give the company additional flexibility to pursue a more aggressive pivot toward blockchain-related assets or technologies.

Limiting immediate dilution

The offering allows GameStop to raise capital without immediate shareholder dilution. However, future conversions of the notes into equity could increase the outstanding share count.

The company retains the flexibility to settle in cash, which may limit dilution depending on stock performance at the time of conversion.

The notes and any shares issuable upon conversion will not be registered under federal securities laws and may not be publicly offered or sold in the US without an exemption.

GameStop shares slipped slightly in after-hours trading following the announcement, indicating that investors remain skeptical of its investment plans for now.