GameStop defies expectations by raising $1.5B to integrate bitcoin into its balance sheet

Known for its market fluctuations and position, the video game retailer strikes again by raising $1.5 billion through a convertible debt issuance.

Once again, GameStop is defying expectations. The video game retailer, known for its market fluctuations and ever-shifting position, has announced an initiative that will see it raise $1.5 billion through convertible debt issuance to integrate bitcoin into its balance sheet.

A company caught between a turbulent legacy and crypto ambitions

Initially planning to raise $1.3 billion, GameStop has managed to exceed this amount thanks to strong interest from investors for the convertible bonds. In total, the operation will see $1.5 billion invested in these bonds, which can be exchanged for shares by 2030 at an initial conversion rate of 33 shares for $1,000. A future where debt and equity merge.

Already, some analysts are noting an unlikely scenario: on the bitcoin side, no holder would be keen to sell at the current price, a factor that may explain the lukewarm reaction from the markets. Indeed, the GME stock only rose by 1.34% at closing, followed by a slight increase of 0.5% in after-hours trading.

A timid reaction, in stark contrast to the jump of 12% observed on March 26 during the initial announcement of bitcoin buyback, with no real impact on the BTC price. But the euphoria was short-lived: the next day, the stock dropped by 24%.

For analysts, this is a symptom: beyond the crypto enthusiasm persists doubt about GameStop’s business model, still seeking stability after years of turbulence. This ambivalence reflects a deeper dilemma. Convertible debts lower borrowing costs but potentially dilute shareholder value. A delicate balance, where GameStop is counting on bitcoin to boost confidence. It remains to be seen whether crypto will be enough to transform the image of a company still seen as a symbol of speculation.

GameStop joins the ranks of “Bitcoin-friendly” companies: strategy or fad?

On March 25, GameStop’s board of directors approved the purchase of bitcoin and stablecoins, drawing from its cash reserves — now estimated at $4.77 billion.

A decision that aligns the retailer with giants like MicroStrategy, a pioneer in bitcoin-enriched balance sheets. However, GameStop is arriving rather late to this initiative. Why now?

The company had already flirted with crypto, launching a digital wallet in 2022, which was quickly abandoned due to regulatory difficulties.

This shift towards bitcoin thus seems less like an innovation and more like a calculated repositioning. A move that sparks questions: is it a long-term strategy or an attempt to ride the wave of volatility, like with meme stocks?

The historical context of GameStop adds a layer of irony. In 2021, the GME stock became the banner of a revolt by individual investors against Wall Street.

Today, the company is integrating an asset often criticized for sparking speculation. A paradox that does not escape observers: could bitcoin, seen as a tool for financial emancipation, help restore the image of a company in search of legitimacy?

GameStop is going all in. By integrating bitcoin into its balance sheet, the company is betting as much on regaining credibility as on financial performance. While the success of this initiative remains uncertain, it highlights a broader trend: crypto assets are attracting even traditional players in search of a new chapter.

Between hope and skepticism, one thing is clear: GameStop continues to write its story off the beaten path. Will bitcoin become its glorious new chapter or just a brief episode? Only time will tell, especially considering the company's performance with a $1.63 billion loss in the first quarter of 2025.