GameStop Secures $1.3 Billion in Convertible Debt to Fuel Bitcoin Ventures

GameStop Raising $1.3 Billion of Convertible Debt for Bitcoin Purchases

March 26, 2025 - GameStop, the video game retailer, has announced plans to raise $1.3 billion in convertible debt to purchase bitcoin and other cryptocurrencies. The move marks a significant shift for the company, which has historically focused on selling physical and digital games.

According to a filing with the Securities and Exchange Commission (SEC), GameStop plans to use the funds to acquire and hold cryptocurrencies, including bitcoin. The debt issuance will be in the form of convertible senior notes, which will have a maturity date of 10 years.

The move is seen as a strategic play by GameStop to diversify its assets and potentially create new revenue streams. The company has been struggling in recent years, with declining sales and profits. By investing in cryptocurrencies, GameStop hopes to tap into the growing demand for digital assets and potentially generate returns through price appreciation or trading.

"We believe that investing in cryptocurrencies aligns with our goal of creating new and innovative ways to engage with our customers," said GameStop CEO, Matt Sandler. "We are excited about the potential opportunities that this presents and believe it will be a valuable addition to our portfolio."

The convertible debt offering is being led by a syndicate of banks, including Goldman Sachs, J.P. Morgan, and Morgan Stanley. The deal is expected to close in the coming weeks, pending the satisfaction of customary closing conditions.

The move by GameStop into the cryptocurrency market is seen as a significant development in the space, as it marks one of the first times a major retailer has invested in digital assets. The news has sent shockwaves through the market, with many analysts speculating about the potential implications for the space.

"This is a game-changer for the cryptocurrency market," said David Schwartz, a cryptocurrency analyst at Bloomberg. "GameStop is a well-established brand with a large customer base, and its entry into the market could bring a new level of mainstream attention to digital assets."

The news has also sparked debate among investors and analysts about the potential implications for the broader market. Some have expressed concerns about the potential risks associated with investing in cryptocurrencies, while others see the move as a sign of growing institutional interest in the space.

Regardless of the outcome, the move by GameStop into the cryptocurrency market is likely to have significant implications for the space in the coming months and years. As one of the largest retailers in the world, the company's entry into the market could bring a new level of mainstream attention and investment to digital assets.