GameStop follows Strategy’s lead with bitcoin acquisition plan, $1.3 billion note offering

Business•March 26, 2025, 4:57PM EDT
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GameStop follows Strategy’s lead with bitcoin acquisition plan, $1.3 billion note offering

Quick Take

  • In conjunction with Q4 earnings on Tuesday, GameStop said it would update its investment policy to add Bitcoin as a treasury reserve asset.
  • “Welcome to Team Bitcoin,” Strategy’s Michael Saylor wrote Tuesday on X.
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Following in the footsteps of bitcoin treasury company Startegy, beleaguered video game retailer GameStop announced a proposed private offering of $1.3 billion of convertible senior notes to begin its new bitcoin acquisition plan.

GameStop is offering $1.3 billion in convertible notes — a type of debt that can later be converted into stock — without any interest payments. These notes will be due in 2030 and will only be available to large institutional investors. The company is also giving these investors the option to buy up to an additional $200 million in notes within 13 days of the initial sale.

As part of its fourth-quarter earnings announcement on Tuesday, GameStop said it will update its investment policy to include Bitcoin as a treasury reserve asset. The company also reported a net income of $131.3 million and $4.75 billion in cash as of Feb. 1.

This isn't GameStop's first time experimenting in the crypto world. The company launched an NFT marketplace in 2022 but closed it in February 2024, citing regulatory uncertainty.

After jumping more than 11% in Wednesday's trading session, GameStop's stock fell 5.5% in after-hours trading.

 

'Welcome to Team Bitcoin'

In February, CEO Ryan Cohen hinted at the move by posting a photo with MicroStrategy Chairman Michael Saylor.

"Welcome to Team Bitcoin," Saylor wrote Tuesday on X.

Strategy's "21/21 plan" targets a total capital raise of $42 billion in equity offerings and fixed-income securities for bitcoin acquisitions. That company has used proceeds from the sale of its class A common stock, MSTR, as well as new perpetual strike preferred stocks. Strategy now holds a total of 506,137 BTC — worth over $44 billion.

"When MicroStrategy started buying bitcoin in 2020, they had nowhere near that amount of cash," a user pointed out Tuesday on X in a post shared by Matthew Sigel, head of digital assets research at VanEck. "In fact the total amount injected from existing cash in treasury by Microstrategy since 2020 is only about $650M, there rest was all debt funding or ATM sells."