After confirming unanimous approval from its board to add Bitcoin as a treasury reserve asset, GameStop (GME) has unveiled further plans for a huge $1.3 billion private offering of convertible senior notes that will be used to buy Bitcoin, following the playbook set out by Michael Saylor with Strategy.
In a press release yesterday (March 26), GameStop clearly stated the intention to use the net proceeds from the senior notes “for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy.”
An announcement regarding Bitcoin pic.twitter.com/gG8JRarIok
— GameStop (@gamestop) March 25, 2025
GameStop Investors Weigh Up Whether Borrowing To Buy Bitcoin Is The Right Move: GME Price Flip-Flops
GameStop, a video game retailer, plans to offer the first buyers of its $200 million in notes, which are like IOUs from GameStop that don’t pay regular interest, a chance to buy more.
The notes are due on April 1, 2030, unless they’re cashed in, bought back, or turned into something else earlier. If someone wants to trade in these notes, GameStop can choose to give them cash, shares of its regular stock, or a mix of both.
This news comes just a day after GameStop said that its board unanimously agreed to a change in its investment policy that will see Bitcoin and USD-backed stablecoins added to its treasury reserve assets. The market initially reacted well to the news on March 25, and GameStop’s stock rose 16% that day.
However, the excitement tempered when GameStop said it would be borrowing $1.3 billion via these notes yesterday. With investors weighing the benefit of creating a Bitcoin reserve against the large amount borrowed to facilitate such a move, the stock fell 8% after the market closed on Wednesday.
The 8% drop for GME on Yesterday’s news of a $1.3 billion raise seems to have investors thinking that maybe holding Bitcoin is not worth taking on such a significant amount of debt.
GameStop said in Tuesday’s announcement it already had $4.8 billion in cash, and this $1.3 billion raise will give the company even more money to play with for its new Bitcoin-buying plan.
BREAKING: GameStop $GME to raise $1.3 billion to buy #Bitcoin pic.twitter.com/2sO1ZplK2V
— Bitcoin Magazine (@BitcoinMagazine) March 26, 2025
Does Saylor Have Some Competition? GameStop Copying The Strategy Playbook
These “convertible senior notes” are a type of loan that can later be swapped for company stock. They have been ripped right from Michael Saylor’s Strategy. Saylor has used this method to become the world’s largest corporate holder of Bitcoin.
To date, Strategy has borrowed huge amounts of money to buy over 500,000 Bitcoins, worth over $44 billion. As a result of Saylor going all-in on Bitcoin, the Strategy stock price is up over 77% in the past 12 months.
Strategy isn’t the only firm taking this approach. Semler Scientific (SMLR), MARA Holdings (MARA), and Riot Platforms (RIOT) are all issuing convertible debt to create a Bitcoin reserve.
This Thursday morning, GME shares are down around 6.5% in pre-market trading, following a nearly 12% advance in the regular session on Wednesday.
Regarding the digital asset at the center of the conversation, Bitcoin has bounced firmly off yesterday’s lows of $85,500 and has now reclaimed $87,000. Renewed sentiment across the market could see BTC push back toward $90,000 before the weekend rolls around.
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GameStop have announced a $1.3 billion raise that will be used to add Bitcoin to its treasury
- By offering convertible senior notes, GameStop is following the Strategy playbook set out by Michael Saylor
- On Tuesday’s news of GameStop voting to add Bitcoin to its treasury, its share price surged
- On Wednesday’s news of GameStop essentially adding $1.3b in debt to buy Bitcoin, the GME share price fell 8%
- BTC Bull (BTCBULL) presale sees a surge in funding as it secures $4.1 million. Investors are stacking BTCBULL for their slice of upcoming BTC airdrops
