GameStop (GME) is planning a private offering of $1.3 billion in convertible senior notes to fund Bitcoin (BTC) purchases

The announcement follows GameStop's March 25 disclosure of an updated treasury strategy that will include digital assets.

GameStop (NYSE:GME) is planning to raise $1.3 billion through a private offering of convertible senior notes to fund general corporate purposes and Bitcoin (BTC) purchases for its treasury, the company announced on Friday.

The move follows GameStop’s disclosure of an updated treasury strategy that will include digital assets.

While the company did not disclose the amount of Bitcoin it intends to acquire, the filing confirmed that part of the funds raised will support the integration of Bitcoin into its balance sheet.

GameStop’s move aligns with a growing trend of corporations incorporating Bitcoin into their treasury reserves, although such activity has primarily been concentrated among technology or fintech firms.

By allocating proceeds toward Bitcoin, the firm signals a strategic diversification to allocate its over $4.5 billion in cash.

Earlier this year, Strategy began a program to acquire and hold Bitcoin as part of its treasury strategy.

This strategy popularized the issuance of debt to purchase Bitcoin, using this method to add part of the 500,000 BTC held by its treasury. Until 2027, Strategy plans to raise $42 billion to acquire more Bitcoin.

Convertible notes offering

The zero-coupon convertible senior notes, maturing on April 1, 2030, will be issued through a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

The securities will be GameStop’s unsecured obligations and will not bear regular interest or accrue in principal. Upon conversion, GameStop may settle obligations in cash, Class A common stock, or a combination of both at its discretion.

Initial terms, including the conversion rate, redemption rights, and repurchase features, will be established at the time of pricing. The pricing reference will be based on the US composite volume-weighted average price (VWAP) of GameStop’s Class A shares on the pricing date.

The company also granted initial purchasers a 13-day option to buy up to an additional $200 million in notes. If completed in full, the offering would bring the total amount raised to $1.5 billion.