GameStop has announced an increase in the issuance of senior convertible zero-coupon bonds to $2.25 billion. This decision was made following a significant drop in the company’s stock value — GameStop shares fell by more than 17%, which may be related to both the plans for the new bond issuance and the recent publication of the financial report for the first quarter of 2025.
This is reported by Бізнес • Медіа
Key Details of the Issuance and Market Reaction
Initially, the company planned to raise $1.75 billion, but after reviewing the terms, the amount was increased. The bonds have a maturity date in 2032, with no coupon payments or dividends. Additionally, GameStop has entered into an option agreement for another $450 million, so the total amount of raised funds could reach $2.68 billion if the option is exercised. The completion of the bond sale is expected by June 17, 2025.
Investor reaction to the second consecutive bond issuance has been negative: after the market opened, GameStop (GME) shares rose by 3.4%, but overall, their value decreased by 23.5% over five days. At the time of publication, shares are trading at $22.67, slightly above the closing price of June 12 — $22.14.
Use of Capital and Financial Performance
GameStop plans to allocate the raised funds for general corporate purposes. Among potential directions is the purchase of Bitcoin, as the company has previously announced its intention to build reserves in the first cryptocurrency.
“According to the report, the company’s revenue fell to $732.4 million, which is 20.4% less than in the same period last year. However, the company recorded a net profit of $44.8 million compared to losses in the first quarter of 2024.”
It is worth noting that in April 2025, GameStop already raised $1.5 billion through bond issuance. The current decision to expand the issuance comes against the backdrop of a revenue decline for the first quarter of 2025 to $732.4 million, which is 20.4% less than in the corresponding period of 2024. Nevertheless, the company managed to achieve a net profit of $44.8 million after a loss-making first quarter last year.