Key Takeaways
- GameStop completed a $1.5 billion convertible note sale to fund Bitcoin purchases.
- The company's board approved investing in Bitcoin and stablecoins on March 25.
- GameStop now holds $4.77 billion in cash reserves, up significantly from the prior year.
GameStop has finished raising $1.5 billion through a convertible debt offering, with proceeds partly allocated for buying Bitcoin and US-dollar stablecoins.
The offering, initially planned for $1.3 billion, was upsized after investors exercised an additional $200 million greenshoe option, according to an SEC filing on April 1.
Use of proceeds
The company said the funds would be used for …
… general corporate purposes, including the acquisition of Bitcoin.
This aligns with a new investment policy approved by GameStop’s board on March 25.
The five-year notes can be converted into equity at a rate of 33 shares per $1,000 of principal and mature in April 2030.
Market reaction
GameStop’s shares rose slightly, closing at $22.61 on April 1 and moving just 0.5% higher in after-hours trading.
The market reaction stood in contrast to the 12% surge seen on March 26 after the Bitcoin plan was first announced — a gain that was wiped out the next day by a 24% drop amid investor skepticism.
Financial position
GameStop holds $4.77 billion in cash reserves, up from $921.7 million a year earlier.
The company has previously dabbled in digital assets, launching and later shuttering a crypto wallet in 2023.
Now, with board approval and fresh capital, GameStop is joining a cohort of public firms adding Bitcoin to their balance sheets.
