GameStop Upsizes Convertible Note Offering to $2.25B — How Could BTC Benefit?

GameStop has increased its convertible note offering to $2.25 billion, up from the $1.75 billion announced earlier this week, according to a Thursday evening press release.

Key Takeaways:

• GameStop upsized its convertible note offering to $2.25B, with a 32.5% premium conversion price.
• The company holds 4,710 BTC but remains noncommittal about future crypto purchases.
• Proceeds may fund investments or acquisitions, with trading cards now a core revenue focus.

The move comes just months after a similar $1.5 billion raise in April and follows the company’s recent entry into Bitcoin.

Shares of the Texas-based retailer dropped 24% over the past week, closing Friday at $22.14, despite holding steady after the announcement.

The notes, which bear no interest, carry a conversion price of around $28.91 per share — a 32.5% premium over the stock’s Thursday afternoon average.

The structure mirrors the strategy employed by MicroStrategy, which has used premium note offerings to expand its Bitcoin holdings without immediate dilution.

GameStop first disclosed it had purchased 4,710 Bitcoin in March, pushing the stock above $28 at the time. Whether the company plans to expand its crypto reserves remains uncertain.

CEO Ryan Cohen has made it clear that GameStop won’t emulate other firms or signal its buying patterns. In a recent interview, he declined to say whether more BTC purchases were planned.

The press release kept options open, stating that proceeds would be used for “general corporate purposes,” including investments aligned with GameStop’s investment policy and “potential acquisitions.”

$GME GameStop just locked in the terms for their convertible note offering.

Upsized to $2.25 billion from the original $1.75B, with 0.00% interest, meaning bondholders don’t get paid unless they convert.

GameStop gave buyers the right to purchase up to $450M more in notes… pic.twitter.com/qnN4pVLM39

While vague, the language leaves the door open for further digital asset moves.

GameStop’s previous crypto ventures have been mixed. The company launched an NFT marketplace during the last market cycle but shut it down early last year.

At its annual shareholder meeting, Cohen pivoted focus toward trading cards—now making up nearly 30% of quarterly revenue.

“We’re focusing on trading cards as a natural extension of our existing business,” he said.

With capital in hand and crypto already on its books, GameStop could revisit Bitcoin when market conditions align.

A growing list of firms is embracing Bitcoin as a balance sheet hedge or strategic investment. Recent data shows 223 public companies now hold Bitcoin, up from 124 just days earlier.

In total, more than 819,000 BTC, approximately 3.9% of the total supply, is currently held by public firms, according to BitcoinTreasuries.NET.

MicroStrategy remains the largest corporate Bitcoin holder, with 580,250 BTC worth approximately $60.9 billion.

Other major holders include Marathon Digital Holdings and Tesla, both with over $1 billion in Bitcoin.

Last week, Japanese investment firm Metaplanet unveiled an ambitious new target to amass 210,000 Bitcoin by the end of 2027.

As reported, digital asset companies are flooding capital markets to raise funds for large-scale Bitcoin acquisitions, spurred by the cryptocurrency’s rally to a record $111,965 last week.

The surge, up more than 50% from early April, has ignited a wave of listings and mergers as firms race to secure funding while investor appetite remains strong.

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