GameStop (GME) Tumbles as Market Digests Bold $450M Bitcoin Bet via Convertible Notes

GameStop's stock takes a hit after unveiling a $450 million crypto play—funded by convertible notes. Because what could go wrong?

Wall Street's latest meme-stock darling just doubled down on volatility. The gaming retailer turned cult-stock phenomenon is pivoting to Bitcoin—financed through the financial equivalent of a high-stakes roulette spin.

Convertible notes meet crypto gamble

The $450 million raise through convertible debt signals GameStop's all-in moment. Investors clearly aren't convinced—shares slid immediately after the announcement. When your financing strategy looks riskier than a degenerate crypto trader's leverage play, maybe reconsider.

Bitcoin's institutional embrace gets weirder

From Michael Saylor's microstrategy to Elon's Tesla and now GameStop—the corporate Bitcoin adoption playbook keeps getting stranger. At this rate, we'll see McDonalds funding Big Macs with BTC-backed securities by 2026.

The market's verdict? A classic 'show me the money' moment. GameStop's trying to write the next chapter of its redemption arc—but Wall Street's still stuck on the 'meme stock' prologue.

TLDR

• GameStop Raises $450M More to Buy Bitcoin

• GME Bets Bigger on Bitcoin—Stock Drops Anyway

• Bitcoin-Fueled Treasury Shift Fails to Impress Market

• GameStop Doubles Down on BTC, Eyes Long-Term Gains

• GME’s Bitcoin Bet Grows, But Investors Show Doubt

GameStop shares dropped by 0.60% to $23.15 amid new funding tied to a Bitcoin-centered treasury strategy. The company secured $450 million through a follow-on convertible note sale under a greenshoe clause. Despite the added capital, the market signaled doubt about the long-term impact of this crypto-driven approach.

GameStop Corp. (GME)

GME Extends Debt Raise to Boost Bitcoin Holdings

GameStop executed a follow-on offering of zero-coupon convertible senior notes, securing an extra $450 million. The rise followed a $2.25 billion private placement completed earlier in June, bringing the total to $2.7 billion. The initial purchaser exercised the 13-day greenshoe option in full.

The new notes are due in 2032 and may convert into GameStop Class A shares at $28.91 per share. That price represents a 32.5% premium over the stock’s average level during the June 12 offering. The filing confirmed that GameStop intends to allocate part of this funding toward Bitcoin acquisitions.

The offering follows the company’s recent adoption of a Bitcoin-based treasury reserve model. This strategy, first revealed in March 2025, aligns with broader crypto integration in corporate finance. GameStop continues to frame the move as part of general corporate objectives.

Bitcoin Reserve Strategy Takes Shape After $513M Accumulation

GameStop made its first bitcoin purchase in May 2025, acquiring 4,710 BTC at an average cost of around $109,000 per coin. That purchase totaled approximately $513 million and marked the company’s official pivot toward crypto on the balance sheet. The firm confirmed this acquisition followed a separate $1.3 billion convertible offering.

Bitcoin’s recent price action has remained above $107,000, keeping GameStop’s BTC position valued at over $500 million. However, fluctuations in the crypto market and GME’s stock dip suggest traders remain unconvinced. The stock has declined around 24% since the company began accumulating Bitcoin.

This approach resembles that of MicroStrategy, which built its brand on aggressive Bitcoin acquisitions. GameStop follows a similar path, repurposing raised capital into a speculative store of value. The MOVE reinforces the company’s evolving financial positioning despite legacy retail headwinds.

GME Price Weakens Despite Bold Treasury Shift

The GME stock chart showed a downward trend throughout the day, despite early attempts to rally. A short-lived spike occurred around 10:00 AM, but momentum faded quickly. The price closed NEAR its session low, indicating persistent sell pressure.

Although the capital raise boosted GameStop’s balance sheet, equity markets have to reward the Bitcoin integration. Technical indicators suggest GME remains under resistance, with current valuations still trailing the debt conversion price. As a result, the premium embedded in the convertibles looks increasingly optimistic.

The company’s decision to invest in Bitcoin while its Core retail business remains volatile adds further pressure. Market response implies concern over balancing speculative digital assets with operational fundamentals. GameStop’s stock could face continued pressure if Bitcoin prices weaken or capital deployment fails to yield results.