GameStop raises planned convertible note offering to $2.25B from initial $1.75B

GameStop has raised the size of its planned convertible note sale to $2.25 billion from the original $1.75 billion.

According to the company’s June 12 press release, the notes, which do not pay interest and are due in 2032, will be sold privately to large institutional investors. GameStop also gave buyers the option to purchase an extra $450 million worth of notes, which could bring the total to $2.7 billion.

The company expects the sale to close on June 17. After fees and costs, GameStop says it will receive about $2.23 billion, or $2.68 billion if the additional notes are sold. The funds will go toward general business needs, including investments and possible acquisitions.

While GameStop has not confirmed plans to buy more Bitcoin (BTC), the move follows an earlier sale in April where it raised $1.5 billion and used part of the funds to buy 4,710 BTC worth $512 million. As previously reported by crypto.news, the June 11 announcement of the initial $1.75 billion offering triggered a sharp 20% selloff in GameStop shares. 

Shares fell another 5% on June 12 as investors weighed potential dilution and the company’s continued crypto pivot. With a dwindling retail footprint and declining core revenues, which dropped 17% quarter-over-quarter in Q1, the company has been doubling down on digital assets. 

GameStop is one of several public companies that now hold large amounts of Bitcoin. Its May purchase made it the 13th largest corporate holder, according to data from BitcoinTreasuries.net. The company’s broader strategy appears to echo Strategy’s shift, where aggressive Bitcoin accumulation became central to market valuation despite stagnant product revenues.

The newly priced notes carry a conversion rate equivalent to $28.91 per share, a 32.5% premium over the average June 12 trading price. The notes do not bear interest, and GameStop cannot redeem them until June 2029, unless certain thresholds are met. Investors may convert early under specific conditions or demand redemption in 2028.

The offering gives GameStop more time and flexibility as it looks for ways to recover from declining sales and changing demand in the gaming and retail space.