GameStop has increased its private convertible note offering to $2.25 billion, up from an initial $1.75 billion, to fund additional Bitcoin acquisitions and support its cryptocurrency treasury strategy. The transaction is expected to close on June 17.
The gaming retailer recently purchased 4,710 Bitcoin valued at approximately $513 million, becoming the world’s 11th largest corporate Bitcoin holder. This move aligns with GameStop’s intensified focus on integrating cryptocurrency as a core treasury asset.
Investors reacted negatively to the initial financing announcement, driving GameStop shares down over 22%. Concerns centered on potential shareholder dilution and underlying business challenges, compounded by year-to-date revenues of $732.4 million – falling 17% below previous-year results and missing analyst expectations amid declining physical game sales.
The company’s approach mirrors corporate strategies like MicroStrategy’s $1 billion stock offering for Bitcoin accumulation, utilizing capital markets to rapidly scale crypto holdings. GameStop’s expanded debt financing indicates aggressive pursuit of cryptocurrency treasury expansion despite market turbulence.