The zero-coupon senior convertible notes, maturing in 2032 and carrying no periodic dividend payments, include an option for an additional $450 million. If fully exercised, GameStop could raise up to $2.68 billion. The bond sale is expected to close by June 17, 2025.
Proceeds are earmarked for general corporate purposes. Notably, GameStop has previously hinted at using some of the capital to establish a bitcoin treasury, signaling a diversification of its reserve strategy into digital assets.
This marks the company’s second major convertible debt issue in recent months, following an April 2025 placement that raised $1.5 billion. Investors have reacted negatively to the additional leverage, intensifying concerns after the company’s weak first-quarter performance.
GameStop (GME) share price chart on NYSE, June 2025. TradingView. Financial Performance and Market Reaction
In Q1 2025, GameStop reported revenue of $732.4 million, a sharp decline of 20.4% year-over-year. However, the company managed to post a net profit of $44.8 million, a significant turnaround compared to a net loss in the same quarter of 2024.
Market volatility remains elevated. GME shares opened 3.4% higher following the latest announcement but are still down 23.5% over the past five trading days. At last close, the stock was priced at $22.67, modestly above the previous session’s close of $22.14.
The aggressive capital raise, combined with a weak top line, underlines the challenges facing GameStop as it attempts to stabilize its business and seek alternative strategic investments, including potential exposure to cryptocurrency assets.