On March 27, 2025, GameStop stunned the markets by announcing a Bitcoin convertible bond plan that sent its stock plunging by 25%. The bold move, aimed at using Bitcoin assets as a backstop for conventional financing, left investors scratching their heads and wallets significantly lighter. The plan was designed to mix traditional debt with the volatility of digital assets—a risky cocktail that the market didn’t seem to appreciate.
The convertible bond plan was part of an ambitious strategy by GameStop’s leadership, who hoped to tap into the burgeoning cryptocurrency financing. The idea was to use Bitcoin, known for its explosive price swings, as collateral, hoping that its inherent volatility could be harnessed to drive growth. However, the immediate market reaction was anything but supportive. As the stock tumbled 25%, the gamble appeared to have backfired, casting doubts on the viability of merging old-school finance with the crypto.
Then, on March 28, 2025, just a day after the market shock, GameStop attempted to sweeten the deal by pricing its Bitcoin senior notes at USD 29.85. This issuance was intended to signal a commitment to innovative revenue streams and a pivot toward digital asset monetization. The senior notes, priced at 29.85, were aimed at attracting investors by offering a novel way to participate in GameStop's crypto-infused strategy.
GameStop $GME is down 20% since it announced its Bitcoin purchasing plan.
— Louis (@louishliu) March 27, 2025
Many existing shareholders dislike the move, so a switch is happening with large volume.
The next logical step for Ryan Cohen is to stick with the plan and exceed our expectations with over $4B purchase.
Analysts observing these moves noted that the convertible bond plan and the pricing of senior notes are two sides of the same coin. The company is trying to straddle the worlds of traditional and digital finance. The move to price the senior notes at USD 29.85, following a 25% stock drop, appears to be a last-ditch effort to restore confidence among investors. Market insiders remain skeptical, warning that while these innovative steps could eventually pay off in a bullish environment, on the face of it, GameStop’s actions have only deepened concerns about the practical integration of volatile crypto assets into conventional financial structures.
HODL Team
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