GameStop (GME) plans to raise $1.3 billion to purchase Bitcoin through a private offering of convertible senior notes, the company announced Wednesday. The move follows in the footsteps of Michael Saylor’s Strategy and will allow the gaming retailer to begin funding its efforts to invest in the leading cryptocurrency.
“GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy,” the company said in a statement today.
BREAKING: GameStop $GME to raise $1.3 billion to purchase Bitcoin.
— Watcher.Guru (@WatcherGuru) March 26, 2025
On Tuesday, GameStop (GME) announced its plans to add the Bitcoin cryptocurrency (BTC) as a treasury reserve asset. The company’s board unanimously approved the update to GameStop’s investment policy and announced the funding plan in a Wednesday press release.
Michael Saylor’s Strategy (formerly MicroStrategy) has made similar moves over the last year, acquiring billions in BTC and becoming the largest institutional BTC investor. Several companies are beginning to follow a similar model, with GameStop one of the latest big names.
“The notes will be general unsecured obligations of GameStop, will not bear regular interest, and the principal amount of the notes will not accrete,” GameStop notes. “The notes will mature on April 1, 2030, unless earlier converted, redeemed, or repurchased. Upon conversion, GameStop will pay or deliver, as the case may be, cash, shares of GameStop’s Class A common stock, par value $.001 per share (“Class A common stock”), or a combination of cash and shares of Class A common stock, at its election.”
GameStop (GME) stock surged by double digits during Wednesday’s trading session, climbing 11.6%. Shares are down 5% after-hours, slightly correcting from the big gains.