GameStop finishes $1.5 billion salary increases to add bitcoin to balance sheet

Video game retailer GameStop Corporation (GME) has completed a convertible debt offering that raised $1.5 billion.

The offering was originally planned to raise at least $1.3 billion, but buyers chose an additional $200 million principal amount, Gamestop said in a April 1 filing with the Securities and Exchange Commission.

“We expect to use net revenue from our offerings for general corporate purposes, such as the acquisition of Bitcoin in a manner consistent with the company's investment policy,” Gamestop added.

Convertible notes are obligations that can be converted in fairness later, unless they are previously converted, redeemed or repurchased, and are expected to mature on April 1, 2030.

According to the submission, the conversion rate of the notes will initially be 33 common shares per $1,000 of principal.

GameStop stocks did not see any major movements after the end of convertible debt offerings. GME closed at $22.61 on trading day on April 1, up 1.34%, at $22.61, with only another 0.5% bumps seen after the bell, Google Finance data shows.

Positive shareholder sentiment saw the share price jump nearly 12% to $28.36 on March 26, the day after GameStop announced its Bitcoin (BTC) plan, but the following day GME stock fell nearly 24% to $21.68.

Analysts at the time suggest that the chilly reception reflected shareholders' fears about Gamestop's deeper issues regarding its business model.

GameStop joins the growth bitcoin movement

On March 25th, GameStop confirmed that it had received board approval to invest in Bitcoin and US Dollar Pegg stubcoin using the notes and its cash reserves. These reserves were $4.777 billion as of February 1st, compared to $921.7 million the previous year, according to financial statements for the fourth quarter of 2024.

GameStop is a relative clinician of public companies that create Bitcoin finances. Many others have already added Bitcoin to the balance sheet of playbooks, popularized by Micheal Saylor's strategy.

Related: Metaplanet adds $67 million to Bitcoin following a 10-1 stock split

Video game retailers previously entered the crypto space with crypto wallets aimed at users, but were eventually closed in November 2023 due to regulatory uncertainty.

GameStop is considered the first example of Meme Stock's success after a short squeeze in 2021, with stocks surged over 1,000% in a month as traders flipped the table of hedge funds they were making money with the company.

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