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3d ago

GameStop Shares Plunge After Unveiling $1.75 Billion Convertible Note Offering

Investor fears of dilution and exposure to Bitcoin’s swings accompany GameStop’s latest crypto-focused fundraising plan

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GameStop announced plans to raise more than $1 billion from investors on Wednesday.
Kelly Nevitt (picture from GoFundMe page) was killed in a porch collapse at the Portuguese American Citizens Club in Portsmouth, Rhode Islsand, on June 7, 2025 (WJAR).
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Overview

  • GameStop announced a $1.75 billion convertible note offering due 2032 with a 13-day option to issue an additional $250 million to fund investments under its updated treasury reserve policy.
  • The retailer plans to use proceeds for general corporate purposes and potential Bitcoin purchases, building on its May acquisition of 4,710 BTC worth over $500 million.
  • Shares tumbled more than 15% in premarket trading Thursday and fell up to 20% by midmorning, extending a post-earnings slump after Q1 revenue missed estimates.
  • First-quarter sales declined 17% to $732.4 million year over year, below analysts’ $754.2 million forecast, while adjusted EPS of $0.17 beat expectations.
  • Analysts led by Wedbush’s Michael Pachter maintain underperform ratings, warning that the crypto strategy may dilute shareholders and expose the balance sheet to Bitcoin price volatility.