GameStop Borrows Strategy Playbook, Plans to Raise $1.3 Billion to Buy Bitcoin

Video game retailer GameStop said on Wednesday that it plans to offer up to $1.3 billion worth of convertible senior notes to investors, taking a page straight out of Strategy’s Bitcoin-buying playbook.

The Texas-based firm said in a press release that proceeds from the sale will be used for “general corporate purposes, including the acquisition of Bitcoin.” The announcement comes one day after GameStop said it could purchase Bitcoin as a treasury reserve asset following an update to the company’s investment policy.

GameStop expects its offering of convertible senior notes to pay a 0% dividend, according to the press release. The debt can be converted into GameStop’s class A common stock, with a conversion date and pricing set to be determined at a later date.

Strategy has issued billions of dollars of convertible senior notes, raising capital to purchase more Bitcoin than it could otherwise. The company unveiled its latest offering of convertible debt in February, raising $2 billion via convertible notes maturing in March 2030.

GameStop’s expected offering has a similar maturation date. The notes are expected to mature in April 2030, unless they’ve already been converted or are redeemed by GameStop.

The retailer said that holders of its convertible senior notes may receive a mix of cash and shares when the notes are converted at its own discretion.

GameStop shares rose 11% on Wednesday during regular trading hours to $28.38, according to Nasdaq. In after hours trading, however, GameStop’s share price slipped to $26.63.

GameStop CEO Ryan Cohen hinted at the firm’s Bitcoin pivot. Last month, he posed alongside Strategy co-founder and Executive Chairman Michael Saylor in a photo he posted to X.

While GameStop may soon buy Bitcoin using debt, the company is already flush with cash. Per its latest earnings report, the Texas-based firm held $4.7 billion in cash and cash equivalents. That was up significantly from $921 million a year prior.

Editor’s note: This story was updated after publication with additional details.