GameStop Seeks to Buy Bitcoin with $1.3 Billion of Convertible Notes

Video game store GameStop, more recently known for its adoption as a meme stock, announced its intention to acquire Bitcoin through convertible notes, sending its stock soaring.

GME surged 11% to $28 per share after the company announced it would adopt Michael Saylor’s Bitcoin acquisition strategy by proposing a private offering of $1.3 billion of convertible notes to buy Bitcoin after the markets closed on March 26.

The report published on GlobeNewswire does not clarify the percentage of the $1.3 billion that will be used to buy Bitcoin, just that “GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy.”

BTC also rallied 1% on the news, back above $87,000.

“$MSTR had a mere $1.3B market cap when it started stacking BTC. $GME is starting 10x bigger—and I’d bet this will hit even harder than the Bitcoin Strategic Reserve, with real follow-through,” said Jeff Park, Head of Alpha Strategies at Bitwise.

“$GME is the OG—the first retail revolt against centralization. No bond is stronger than the ethos of GME x BTC, by and for the PEOPLE,” Park added.

GME was known as the “retail” stock in 2021, when influencer Roaring Kitty, his followers, and thousands of other retail investors banded together to try and short squeeze institutions that were short GME.The stock soared 1950% to an all-time high of $82 on Jan. 25 2021, from $4 on Jan. 4 2021.