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GameStop Stock Dips 11.7% as Convertible Note Offering Raises Investor Questions
GameStop Stock – GameStop (GME) shares plunged 11.7% in after-hours trading following the announcement of a $1.75 billion private convertible senior note offering, a move that continues the company’s debt financing strategy which could potentially support additional Bitcoin (BTC) acquisitions.
Earlier on Wednesday, GME shares had already dropped 5.34% to $28.55 during regular trading hours after the company reported a 17% decline in first-quarter revenue to $732.4 million, missing analyst expectations. Despite posting a $44.8 million profit in Q1 2025—reversing a $32.3 million loss from the same quarter last year—investor sentiment turned cautious, causing further declines in after-hours trading.
$1.5 Billion Convertible Note Funding Previous Bitcoin Purchases
GameStop’s latest note offering is not its first foray into convertible debt. The company used part of a recent $1.5 billion convertible note raise to purchase 4,710 Bitcoin valued at $513 million on May 28. According to BitcoinTreasuries.NET, GameStop’s Bitcoin holdings currently rank it as the 13th largest corporate Bitcoin holder globally.
Convertible Notes Terms and Strategic Intent
The newly issued convertible senior notes carry a 0% interest rate and mature on June 15, 2032. The offering also includes an option for initial purchasers to acquire an additional $250 million in notes. These notes are convertible into cash, GME stock, or a combination, at GameStop’s discretion. While the company has not explicitly confirmed that proceeds from the new offering will fund more Bitcoin purchases, it stated that investments will align with its existing investment policy and potential acquisitions.
Stock Performance Diverges from Typical Crypto Investors
Since announcing its first Bitcoin purchase, GameStop’s stock has fallen approximately 18.5%, and after factoring in the after-hours drop, the company has wiped out all gains made since March 25, 2025, when it first revealed its Bitcoin investment plans. This performance contrasts with other public companies whose shares generally rally following Bitcoin acquisition announcements.
Key Takeaways
- GameStop’s shares dropped 11.7% after announcing a $1.75B convertible note offering
- The firm holds 4,710 Bitcoin valued over $513 million
- Q1 revenue fell 17% to $732.4 million despite a profit turnaround
- Convertible notes bear 0% interest and mature in 2032
- Stock performance lags behind other Bitcoin-investing companies
This latest financial maneuver highlights GameStop’s continued commitment to integrating cryptocurrency into its corporate strategy, even as its stock faces volatility amid mixed earnings results and investor scrutiny.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
