Key Notes
- GameStop raised $1.5 billion to add the digital gold to its balance sheet.
- The notes carry no regular interest and don’t accrue value over time.
- GameStop’s notes mature on April 1, 2030, unless converted or redeemed earlier.
According to a filing with the US Securities and Exchange Commission (SEC), GameStop completed its $1.5 billion fundraising on April 1 via a private offering, exempt from SEC registration.
The proceeds were invested in 0.00% convertible senior notes due on April 1, 2030. The notes were offered at $1,000 each. This means the investment will not carry any interest rate and the value will remain the same, per the SEC filing.
GameStop Corp (NYSE: GME) stock rose 0.57% to $22.74, according to MarketWatch data. On March 27, the company’s stock price plunged from $28.36 to $22.09 as it announced its plans to create a Bitcoin reserve.
Despite the stock crash, GameStop set its initial conversion rate at 33.4970 shares per $1,000, with $29.85 per share. The filing says that the rates might increase in special cases like a corporate event.
The retailer can’t redeem the notes before April 6, 2028. After that, GameStop can redeem the notes if the stock trades at 130% of the conversion price for 20 out of 30 trading days.
Investors can ask GameStop to repurchase the notes in April 2028 or after a “fundamental change”.
According to the filing, the notes are unsecured and subject to default risks. Events of default include missed payments, failure to convert, major company structural changes, or insolvency.
Upon conversion, GameStop might need to issue up to 69 million company shares.
Joining the Whales
GameStop could enter the list of the top Bitcoin
BTC
$82 889
24h volatility:
2.0%
Market cap:
$1.65 T
Vol. 24h:
$56.74 B
whales like the US government, Strategy (formerly MicroStrategy) and Tether, the company behind the largest stablecoin USDT.
The video game retailer could accumulate over 17,700 Bitcoin at the current price point. Bitcoin is currently trading at $84,400.
Michael Saylor’s Strategy is leading the list with 528,185 BTC, worth $44.5 billion, according to Saylor Tracker data. The company’s latest purchase of 22,048 BTC came on March 31.
Tether also reported accumulating 8,888 BTC, worth roughly $735 million, in the first quarter of 2025. This brings the USDT issuer’s Bitcoin reserve to 92,647 BTC, worth $7.64 billion.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
