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GameStop Announces $1.75 Billion Debt Offering to Fund Strategic Investments

Jun 13, 2025 (1 days ago)
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GameStop plans to raise $1.75 billion through a convertible bond sale to fund investments and acquisitions, including a significant push into bitcoin.

$1.75 Billion Debt Offering and Strategic Investments

  • GameStop is raising $1.75 billion through a convertible senior notes offering due in 2032, with proceeds earmarked for investments, acquisitions, and general corporate purposes [Source: 1, 2, 3].
  • The offering may have a dilutive effect on the company's share count, raising investor concerns3

Bitcoin Investment Strategy

  • GME has purchased $500 million worth of bitcoin and plans to use debt to further invest in cryptocurrency as part of its treasury reserve strategy1
  • The company updated its investment policy to include bitcoin as a "treasury reserve asset"1

Revenue Decline and Strategic Shift

  • GME's revenue has fallen every year since 2023, with a 6% drop in Q1 2025, driven by declining physical store sales1
  • The company is pivoting to trading cards and collectibles, which now account for nearly 30% of total sales [Source: 2, 3].

Positive Free Cash Flow and Bitcoin Purchases

  • Despite soft demand for core offerings, GME generated positive free cash flow in Q1 2025 and purchased 4,710 bitcoins3
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