GameStop's Crypto Gambit: How a $450M Bitcoin Play Failed to Impress Wall Street

GameStop has raised another $450 million, bringing its latest financing to $2.7 billion and has raised more than $4 billion in total in 2025.

The company has said the money could fund its Bitcoin buying program. Surprisingly, investors reacted negatively to the news, sending GameStop’s shares down almost 2.5%.

The reaction highlights the central question around GameStop's Bitcoin push: can the company convince investors that this is a durable strategy rather than just another passing fancy?

How GameStop Raised the Extra $450 Million

GameStop was able to raise the extra $450 million through a greenshoe option that lets underwriters sell additional convertible senior notes beyond what was previously planned.

The notes carry no interest, mature in 2032, and can be converted into GameStop shares at $28.91 per share. For GameStop, that means access to another $450 million, with no periodic interest payments required. Investors, meanwhile, can convert the notes into GameStop shares under the terms of the deal. 

GameStop currently holds 4,710 BTC, purchased in May 2025 at an average price of roughly $108,837 per coin. At around $107,000 per BTC, that position is worth more than $500 million. In case the company used the full $450 million to buy Bitcoin at a similar price, it could add roughly 4,200 BTC. 

What GameStop Told Investors About Its Bitcoin Strategy

While the size of the offering provides GameStop with greater flexibility to buy more Bitcoin, the company has been vague about how much of the new money will be allocated to Bitcoin purchases. It only listed “general corporate purposes” and investments that the company is “permitted to make” under its investment policy as potential uses for the money.

Additionally, GameStop has yet to reveal a comprehensive investment thesis for why the company should (or would) buy Bitcoin.

Metaplanet, by contrast, has framed its Bitcoin treasury around a broader investment thesis (i.e. protection against yen depreciation), and even reports Bitcoin-specific performance metrics alongside its financial results.

The difference in the approach explains why GameStop’s stock price declined over 10% after its first purchase of Bitcoin in May 2025 and nearly 2.5% after the latest purchase in 2025.

A Track Record GameStop Has to Overcome

In addition, GameStop’s current strategy to buy Bitcoin has to be evaluated against its efforts to become a crypto superpower. The company spent 2022 hyping up its NFT marketplace before shutting it down in 2023, only to unveil a crypto wallet in 2023 that it closed in 2024 due to regulatory issues.

That history stands in contrast to Strategy, formerly known as MicroStrategy. This firm has bought more than 847,000 BTC and has consistently identified itself as a Bitcoin buying company, detailing where it buys the cryptocurrency and how much it has purchased every quarter.

When looking at the bigger picture, GameStop’s past inconsistencies and failed ventures will undoubtedly raise the question of whether this strategy will be sustained over the long term.