GameStop’s $1.75b Bitcoin play sends shares into tailspin

After buying $513 million worth of Bitcoin in May, GameStop wants $1.75 billion more, and Wall Street isn’t happy. The stock fell over 15% as doubts linger over the company’s pivot from retailer to crypto whale.

GameStop (GME) shares took a nosedive on June 12, barely a day after the brick-and-mortar retailer announced a $1.75 billion convertible notes offering, potentially to add more Bitcoin (BTC) to its balance sheet.

The company’s stock was already trending downward following a lackluster quarterly performance. On June 11, GameStop reported a 17% revenue dip in the first quarter of 2025, despite ongoing demand for online gaming. Shares fell over 5% that day and slid further on Thursday, as Wall Street remains uncertain whether the company can reverse its financial trajectory through a crypto accumulation strategy.

Why GameStop is investing in Bitcoin

GameStop did not confirm or deny speculation that it would use the $1.75 billion to buy Bitcoin. However, the June 11 announcement stated that proceeds from the convertible notes offering would be used for “investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions.”

Part of that policy includes strengthening its corporate balance sheet with digital assets, signaling a strategic pivot driven by both survival and ambition. Facing shrinking revenues and the waning relevance of its core retail business, GameStop appears to be borrowing from Strategy’s playbook, leveraging Bitcoin as both an economic hedge and a growth catalyst.

Strategy’s aggressive move into Bitcoin has reshaped its market narrative. Since first investing in BTC in August 2020, its stock has surged 256%, climbing from $110 to $392 per share as of early June and far outperforming both the S&P 500 and broader tech sector benchmarks. Meanwhile, core software revenue remained mostly flat, dipping from $481 million in 2020 to $463 million in 2024, cementing Bitcoin as the primary driver of shareholder value.

Bitcoin’s long-term upside and growing institutional adoption present a speculative but potentially high-reward strategy that could help GameStop reinvent itself. By acquiring 4,710 BTC in May and signaling plans for more through the new convertible notes offering, the company is making a clear bet that Bitcoin’s potential could reinvigorate investor confidence and address its operational challenges.

GameStop’s recent Bitcoin purchase positioned it as the 13^th largest corporate holder of the original cryptocurrency, according to BitcoinTreasuries.NET data.