GameStop Corp has increased its planned convertible note offering to $2.25 billion, up from an initial $1.75 billion announced earlier this week.
The offering, targeting qualified institutional buyers under Rule 144A of the Securities Act, is expected to close on June 17, subject to customary conditions.
The zero-coupon senior notes will mature on June 15, 2032, unless converted, redeemed, or repurchased earlier. GameStop has also granted investors a 13-day option to purchase up to an additional $450 million in notes, potentially raising the total to $2.7 billion.
The company expects net proceeds of approximately $2.23 billion—or $2.68 billion if the over-allotment is exercised in full—after deducting fees and expenses. Funds will be used for general corporate purposes, including investments and potential acquisitions, in line with GameStop’s internal investment policy.
The notes will be convertible into cash, GameStop Class A common stock, or a combination of both at the company’s discretion. The initial conversion rate is set at 34.5872 shares per $1,000 principal amount, equating to a conversion price of about $28.91—representing a 32.5% premium over the stock’s volume-weighted average price on June 12.
Noteholders will be able to convert their holdings under specific conditions before March 15, 2032, and freely afterwards until maturity. Redemption rights kick in starting June 20, 2029, if GameStop’s stock trades at or above 130% of the conversion price for 20 out of 30 consecutive trading days.
While GameStop has not announced any new Bitcoin purchases, the offering follows an April fundraising round where it raised $1.5 billion and used part of the funds to buy 4,710 BTC, then worth approximately $512 million.
GameStop has purchased 4,710 Bitcoin. pic.twitter.com/gGdr0BRrAv
— GameStop (@gamestop) May 28, 2025
That purchase made GameStop the 13th-largest corporate Bitcoin holder, according to BitcoinTreasuries.net. GameStop shares closed sharply lower on Thursday, falling over 22% to $22.14 following the company’s announcement of its upsized $2.25 billion convertible note offering. However, the stock regained some ground in after-hours trading, rising 1.13% to $22.39, according to Google Finance.
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