GameStop’s shares have taken a significant hit, falling over 20% in value, as the video game retailer revealed plans to raise $1.75 billion through a convertible debt offering and explore its trading card market.
The company aims to use the note offering to fund its new bitcoin purchase strategy, which is part of its investment policy to add cryptocurrencies to its balance sheet. In January, GameStop bought 4,710 bitcoins worth over half a billion dollars.
GameStop’s stock price has been volatile since announcing its decision to buy bitcoin, with some analysts expressing skepticism about the move. CEO Ryan Cohen attributes the plan to macro concerns, suggesting that bitcoin’s fixed supply and decentralized nature could provide protection against certain risks.
In addition to its bitcoin strategy, GameStop is shifting its focus towards trading cards, which Cohen describes as a “natural extension” of its existing business. The company reported a 54% year-over-year surge in collectibles revenue during the first quarter, driven by growing demand for trading cards, particularly the Pokémon Trading Card Game.
A recent survey by data tracker Circana found that 19% of adults have purchased Pokémon trading cards in the past six months, with many collecting them as a hobby or for decoration. This demographic is also contributing to boosting toy sales and has been identified as one of the highest-spending groups among all age groups during the first quarter.
Source: https://www.cnbc.com/2025/06/12/gamestop-shares-tank-on-convertible-bond-offering-to-potentially-buy-more-bitcoin.html