Key Takeaways
- GameStop upsized its convertible note offering to $2.25 billion.
- Proceeds may fund general purposes and further bitcoin acquisitions.
- GameStop's Q1 revenue fell 17%, and its stock dropped over 30% year-to-date.
GameStop has upsized its private offering of zero-coupon convertible senior notes from $1.75 billion to $2.25 billion, according to a company announcement late Thursday.
The notes, which mature on June 15, 2032, pay no interest and can be converted into GameStop stock at a premium as the maturity date approaches.
Investors are also offered downside protection via a buyback option in 2028 or if major corporate events occur.
The company granted initial purchasers a 13-day window to buy up to an extra $450 million in notes.
GameStop expects the offering to close on June 17, 2025, raising around $2.23 billion net, or $2.68 billion if the full overallotment is exercised, after fees and expenses.
Proceeds and bitcoin strategy
GameStop plans to use the proceeds for general corporate purposes and potential acquisitions that fit its investment policy.
In March, the company amended its policy to allow bitcoin as a treasury reserve asset. By May 28, GameStop disclosed it held 4,710 BTC—worth roughly $495 million at the time—following earlier convertible note sales.
Revenue slump and stock reaction
The move comes after GameStop reported a 17% drop in first-quarter revenue, falling to $732.4 million from $881.8 million a year ago.
News of the initial $1.75 billion offering sent the company’s stock down 22.5% on Thursday, with GME shares having lost over 30% year-to-date.
GameStop’s meme stock status, fueled by figures like Keith “Roaring Kitty” Gill and the WallStreetBets subreddit, continues to draw market attention despite ongoing volatility.
