GameStop has announced a substantial bond deal worth $1.75 billion, which is part of its strategy to significantly invest in Bitcoin.

This follows a previous $1.5 billion offering made in April, with intentions to allocate some of those funds towards Bitcoin acquisitions.

The move to purchase Bitcoin marks a strategic shift for GameStop, moving beyond its meme stock status and demonstrating a commitment to sustainable growth in a rapidly evolving market.

GameStop is transitioning from a traditional retail model to a hybrid approach that integrates both retail and digital finance, reflecting the increasing importance of the digital market.

The company's board has officially approved the inclusion of Bitcoin as a treasury reserve asset, further emphasizing its pivot towards cryptocurrency.

As part of its 2024 revenue report, GameStop has successfully acquired 4,710 Bitcoins, valued at over $500 million.

Following the announcement of the Bitcoin purchase, GameStop's shares saw a 4.4% increase in pre-market trading, indicating a growing correlation between its stock performance and Bitcoin's market movements.

Despite these positive developments, the market initially reacted negatively to the new debt offering, resulting in an 11% drop in GameStop shares during after-hours trading.

The new bond offering consists of 0% interest convertible senior notes that mature in June 2032, providing flexibility as they can be converted into cash or common stock under specific conditions.

Investors also have the option to purchase an additional $250 million in notes within 13 days of the initial issuance, enhancing the offering's appeal.

The funding for this acquisition was facilitated by the sale of $1.3 billion in convertible bonds, reflecting a strategic shift towards digital assets amid declining traffic in physical stores.

In conjunction with these developments, Bitwise Asset Management has launched the $IGME ETF, which aims to capitalize on GameStop's crypto strategy by employing a covered call strategy to generate income from market volatility.