GameStop raises $1.5 billion to buy Bitcoin, signaling a shift from retail to crypto investments - IcoHolder.
GameStop, the video game retailer, has successfully completed a $1.5 billion offering of convertible senior notes, with plans to use the funds to purchase Bitcoin for its corporate treasury. The sale, finalized on April 1, 2025, raised $1.48 billion after fees, surpassing the company’s initial target of $1.3 billion.
The funds from the offering will be allocated for general corporate purposes, with a significant portion earmarked for acquiring Bitcoin. GameStop’s decision to diversify its balance sheet by holding the cryptocurrency follows a larger trend among publicly traded companies, including Strategy (formerly MicroStrategy), which has accumulated more than 500,000 Bitcoin, valued at over $45 billion. Like Strategy, GameStop is leveraging convertible senior notes to fund its Bitcoin purchases.
This decision aligns with GameStop’s ongoing efforts to strengthen its financial position and move beyond its core retail business. The company’s board approved the Bitcoin and stablecoin investment plan on March 25, using GameStop’s $4.77 billion in cash reserves to support the strategy.
Despite the enthusiasm surrounding the Bitcoin purchase, concerns have been raised regarding the company’s overall direction. Analyst Bret Kenwell of eToro questioned the future of GameStop’s traditional retail operations, saying, “If Bitcoin is going to be the pivot, where does that leave everything else?” The retailer has also faced challenges, including the closure of several stores this year, further fueling skepticism about its ability to balance its expanding crypto investments with its diminishing retail footprint.
The announcement did little to boost GameStop’s stock price, which ended the trading day with a modest increase of just 1.34%. While the move to invest in Bitcoin highlights the company's ambition to diversify its holdings, it also signals a shift in strategy that may reshape its business in the years to come.
