GameStop Follows Strategy’s Lead! Plans a $1.3 Billion Private Placement to Enter the Bitcoin Market!

TradingKey - GameStop intends to issue $1.3 billion in convertible senior notes to purchase Bitcoin. Why is its stock price dropping instead of rising?

On Wednesday, GameStop announced the private placement of $1.3 billion in convertible senior notes, with the proceeds earmarked for general corporate purposes, including the purchase of Bitcoin (BTC) . 

Reportedly, GameStop’s notes are a type of unsecured debt that does not generate regular interest, and the principal will not accumulate. The notes are set to mature on April 1, 2030.

GameStop’s fundraising approach to purchase Bitcoin closely resembles Strategy’s model, albeit on a much smaller scale. As of March 16, 2025, Strategy(MSTR) and its subsidiaries hold nearly 500,000 Bitcoins, with an average cost of $66,000 per Bitcoin, amounting to a total investment of approximately $33.1 billion.

If GameStop attempts to fully replicate Strategy's approach (MSTR), it risks losing competitiveness and may not be well-received by the market. The stock price fluctuations reflect this sentiment, as GameStop’s stock dropped over 7% in pre-market trading today.

GameStop Stock Price Trend Chart, Source: Google.