On April 1, GameStop filed with the SEC, announcing the successful completion of a private offering totaling $1.5 billion in Convertible Senior Notes due in 2030. This amount includes the full exercise of the initial purchaser’s option, which accounted for an additional $200 million.
Intriguingly, the filing specifically mentioned Bitcoin in the “Proceeds” section. GameStop indicated its intention to allocate the net proceeds from this offering for “general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the company’s investment policy.” This implies that a substantial portion of the $1.48 billion in net proceeds from the convertible notes could potentially be directed towards purchasing Bitcoin (BTC).
JUST IN: GAMESTOP COMPLETES ITS $1.5B STOCK OFFERING
GAMESTOP NOW HAS $1.5B TO BUY $BTC https://t.co/SM9Nnsv8wE pic.twitter.com/Nf32AwTfaw
— Arkham (@arkham) April 1, 2025
Another Corporate BTC Buyer
This offering essentially functions as a loan, wherein GameStop borrows funds and commits to repay them by a specific maturity date. The “Senior” designation of these notes affords them precedence over other debts in the event of bankruptcy, while the “Convertible” aspect allows holders to exchange the notes for a predetermined number of the company’s shares instead of opting for cash repayment.
In a significant strategic move, GameStop’s board unanimously approved an update to its investment policy to include Bitcoin as part of its asset portfolio. This positions GameStop alongside other corporate giants such as Strategy, Tesla, and Metaplanet in embracing Bitcoin as a part of their investment strategies.
Notably, GameStop’s stock (GME) has witnessed a nearly 7% increase since the start of the week, bouncing back from a prior trading low of below $21. However, it remains down 28% year-to-date, albeit showing a doubling in value compared to the same period last year.
No Immediate Reaction From BTC Prices
Despite the bullish news, Bitcoin prices have remained relatively stable. In an additional development, Tether recently announced a significant expansion of its Bitcoin holdings with a $735 million purchase in Q1. Still, there was little observable impact on BTC prices following these announcements.
On the day of the announcement, Bitcoin was up slightly but retreated from an intraday high of $85,438, settling around $84,300 during the Asian morning session. Over the past week, Bitcoin has diminished by roughly 3.5%, demonstrating a range-bound activity pattern over the past month.
As of the current writing, the total cryptocurrency market capitalization has experienced a slight decrease, resting around $2.8 trillion, reflecting a 17.5% decline year-to-date.
The implications of GameStop’s strategic move into Bitcoin extend beyond immediate financial metrics, marking a significant step towards mainstream corporate adoption of cryptocurrency.
