GameStop's stock price experienced a decline following the announcement of a $1.75 billion convertible notes offering aimed at funding its Bitcoin investments.

Despite reporting a profit of $44.8 million for the first quarter, the company faced a significant revenue miss of $732.4 million, contributing to the drop in stock price.

On June 11, 2025, GameStop shares fell approximately 5% during regular trading and an additional 10% in after-hours trading, following a 17% decline in Q1 revenue reported the previous day.

The company's investment strategy includes adding Bitcoin as a treasury reserve asset, a move announced in March 2025.

Proceeds from the convertible notes offering are intended for general corporate purposes, which may include investments in Bitcoin and other blockchain assets.

The convertible notes will not bear interest and are set to mature in June 2032, with conversion terms to be determined later.

The offering includes zero-coupon notes with an option for initial purchasers to acquire up to $250 million more in notes within 13 days after issuance.

The notes can be converted into cash, GameStop stock, or a combination of both, although the conversion rate remains undetermined.

This debt offering supports GameStop's strategy of investing in Bitcoin and potential acquisitions, although it does not explicitly state that the funds will be used solely for Bitcoin purchases.

Currently, GameStop ranks as the 13th largest corporate holder of Bitcoin, according to data from BitcoinTreasuries.NET.

The company has significantly increased its cash reserves, reporting $4.7 billion in cash and equivalents as of March 2025, up from $921 million the previous year.

CEO Ryan Cohen hinted at a Bitcoin purchase earlier in February 2025, sharing a photo with Michael Saylor, the leader of MicroStrategy, the largest corporate Bitcoin treasury firm.