GameStop is making big moves. The video game retailer reported a narrower loss for Q2, and it’s all thanks to a bold new Bitcoin strategy.

While revenue still dipped a bit, the company’s holdings of 4710 $BTC gave its balance sheet a massive boost with a valuation of over half a billion dollars. This is a shift in how GameStop operates.

Under Chairman Ryan Cohen, the company is reshaping its entire financial playbook. They’ve sold off international units and raised cash through a big bond sale, and now they’re joining a small yet growing club of publicly traded companies that have diversified into digital assets.

To reward investors and strengthen its position, GameStop announced a unique dividend in the form of warrants. For every 10 shares of GME stock, an investor will receive one warrant. Each warrant allows the holder to purchase one share of common stock for $32 at any time until the warrants expire on October 30, 2026.

With the current price being around $23.59, the dividend is a discount coupon for long-term investors, offering a big incentive if the stock price rises to above $32. It’s a clever strategy to incentivize long-term holding.

The market loves it too, as GameStop shares saw a nice little bump after the news broke. The strategy change is just the injection to bring GameStop into the modern world, just like Bitcoin Hyper ($HYPER) plans to do for $BTC by addressing its long-standing flaws.

The Wild West of Crypto Stock

The impact of corporate crypto holdings extends beyond established companies like GameStop. The market saw an even more dramatic example with QMMM Holdings, a Hong Kong-based media company.

They announced a pivot to blockchain and AI, revealing a plan to build a $100M crypto treasury, and its stock went wild. Shares surged an unbelievable 2300% in one day.

But as quickly as it rose, it came crashing back down, dropping nearly 50% in after-hours trading. This shows the high-risk, high-reward nature of these investments.

While QMMM’s stock eventually settled, its volatility shows that for some companies, a crypto announcement is less about a steady strategy and more about a speculative gamble.

The Missing Link: Bitcoin’s Hyperdrive

It’s safe to say the corporate world has finally woken up to $BTC, but if we’re being real, Bitcoin isn’t really built for speed. That’s where Bitcoin Hyper ($HYPER) comes in. It’s a revolutionary Layer-2 solution designed by developers to address $BTC’s biggest challenges: speed and a lack of smart contract functionality.

Bitcoin is the main power grid, secure and reliable, but developers didn’t design it to power every appliance in the house. Bitcoin Hyper ($HYPER) is the smart power strip that plugs into the grid but allows you to run everything without overloading the main circuit.

By leveraging the Solana Virtual Machine (SVM), $HYPER promises to bring blazing-fast transactions and dirt-cheap fees to the Bitcoin ecosystem. It’s unlocking new potential, enabling $BTC to be used for DeFi, NFTs, and dApps without the frustrating delays and high costs.

$HYPER’s taking Bitcoin from a static store to a dynamic usable asset.

Grab Your Ticket to the Future

Beyond the core tech, holding the $HYPER token offers tangible benefits. The Layer-2 network will use it as the native currency for gas fees, giving it essential utility from day one.

Bitcoin Hyper has already raised over $14.8M in its presale, clearly showing investors see its potential.

$HYPER has a buzzing community on X and Telegram with over 19K combined followers/subscribers. This will help maintain the hype, promote the positive, and see the project succeed.

Beyond the Bitcoin Bet

GameStop’s move is proof that things are changing and that companies see the value in digital money. From GameStop’s long-term play to the crazy ride for QMMM, it’s a world where a crypto announcement can send a stock to the moon.

The new reality is a gold rush but also a minefield. The market is running on vibes and speculation, not just the usual financial numbers. This is where cool projects like Bitcoin Hyper ($HYPER) will stand out from the noise.

But before you throw your money into an investment, don’t let the buzz blind you. Do your own research, and remember we don’t intend this as financial advice.

Authored by Aaron Walker, NewsBTC — https://www.newsbtc.com/news/gamestop-revival-thanks-to-bitcoin-hyper-explodes/ 

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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June 14, 2025

GameStop has increased its convertible note offering to $2.25 billion, up from the $1.75 billion announced earlier this week, according to a Thursday evening press release.

The move comes just months after a similar $1.5 billion raise in April and follows the company’s recent entry into Bitcoin.

Shares of the Texas-based retailer dropped 24% over the past week, closing Friday at $22.14, despite holding steady after the announcement.

GameStop’s Zero-Coupon Notes Come with 32.5% Conversion Premium

The notes, which bear no interest, carry a conversion price of around $28.91 per share — a 32.5% premium over the stock’s Thursday afternoon average.

The structure mirrors the strategy employed by MicroStrategy, which has used premium note offerings to expand its Bitcoin holdings without immediate dilution.

GameStop first disclosed it had purchased 4,710 Bitcoin in March, pushing the stock above $28 at the time. Whether the company plans to expand its crypto reserves remains uncertain.

CEO Ryan Cohen has made it clear that GameStop won’t emulate other firms or signal its buying patterns. In a recent interview, he declined to say whether more BTC purchases were planned.

The press release kept options open, stating that proceeds would be used for “general corporate purposes,” including investments aligned with GameStop’s investment policy and “potential acquisitions.”

While vague, the language leaves the door open for further digital asset moves.

GameStop’s previous crypto ventures have been mixed. The company launched an NFT marketplace during the last market cycle but shut it down early last year.

At its annual shareholder meeting, Cohen pivoted focus toward trading cards—now making up nearly 30% of quarterly revenue.

“We’re focusing on trading cards as a natural extension of our existing business,” he said.

With capital in hand and crypto already on its books, GameStop could revisit Bitcoin when market conditions align.

223 Companies Hold Bitcoin

A growing list of firms is embracing Bitcoin as a balance sheet hedge or strategic investment. Recent data shows 223 public companies now hold Bitcoin, up from 124 just days earlier.

In total, more than 819,000 BTC, approximately 3.9% of the total supply, is currently held by public firms, according to BitcoinTreasuries.NET.

MicroStrategy remains the largest corporate Bitcoin holder, with 580,250 BTC worth approximately $60.9 billion.

Other major holders include Marathon Digital Holdings and Tesla, both with over $1 billion in Bitcoin.

Last week, Japanese investment firm Metaplanet unveiled an ambitious new target to amass 210,000 Bitcoin by the end of 2027.

As reported, digital asset companies are flooding capital markets to raise funds for large-scale Bitcoin acquisitions, spurred by the cryptocurrency’s rally to a record $111,965 last week.

The surge, up more than 50% from early April, has ignited a wave of listings and mergers as firms race to secure funding while investor appetite remains strong.

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Sujha has been recognised as Women In Crypto 2024 by BeInCrypto for her leadership in crypto journalism.

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June 12, 2025

Video game retailer GameStop has proposed a new $1.75 billion bond deal, hinting at its next big Bitcoin buy. The widely regarded meme stock announced the proposed private offering of convertible senior notes on Wednesday.

The latest offering comes with 0% interest, with the convertible senior notes maturing in June 2032. Eligible only to qualified institutional buyers, it includes an option for purchasers to buy an additional $250 million in notes, within 13 days of the initial issuance.

Buyers can convert the debt, which carries no regular interest, into cash or common stock under specific conditions, or a combination of both at GameStop’s election, the release noted.

Funds to Fuel BTC Purchases

The Texas-based company said that the proceeds from the offering would be used for general purposes. This includes “making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions.”

GameStop mentioned in a March release that its board has approved “to add Bitcoin as a treasury reserve asset.”

The firm already disclosed purchasing 4,710 Bitcoin between May 3, 2025 and June 10, 2025, signalling that Bitcoin will be a part of its Q2 balance sheet.

GameStop completed its initial convertible senior notes offering in April. With the $1.5 billion offering, the company had plans to use the proceeds in part to purchase BTC.

GameStop’s opaque investment strategy has sparked contemplation among observers that it might evolve as a multi-faceted holding corporation.

Tetron Invest wrote on X that the company is “transitioning” to be a holding company. “They’re going to hold more than just Bitcoin.”

While acquisitions remain the company’s priority, the lack of detailed capital allocation plans fuels theories about bitcoin diversification.

Following the announcement to raise more debt, GameStop (GME) shares plummeted over 11% in the extended session Wednesday.

GME shares have declined 18% since May 28, after the company confirmed its first Bitcoin buy. The trend contrasts with other firms that have shown a significant increase in their shares after announcing BTC acquisitions.

GameStop (GME) shares fell 11.7% in after-hours trading after announcing a $1.75 billion private convertible senior note offering — extending its debt financing strategy that could fund additional Bitcoin purchases.

GME had already slid 5.34% to $28.55 during normal trading hours on Wednesday after GameStop reported a first-quarter revenue fall of 17% in after-hours the day before. 

GameStop recently bought $513M in Bitcoin

The US video game and consumer electronics retailer didn’t explicitly state that the proceeds would be used to fund additional Bitcoin purchases, but said it intends to make investments in a manner consistent with GameStop’s investment policy in addition to potential acquisitions.

Part of GameStop’s most recent $1.5 billion raise through convertible notes was used to purchase 4,710 Bitcoin (BTC) — worth $513 million at the time — on May 28.

Convertible senior notes have been an increasingly common financial instrument for public companies seeking to bolster their Bitcoin treasuries. 

GameStop’s 4,710 Bitcoin stash currently positions it as the 13th largest corporate Bitcoin holder, according to BitcoinTreasuries.NET data.

The $1.75 billion private offering carries a 0% interest rate, with the convertible senior notes due on June 15, 2032.

The offering includes an option for initial purchasers to buy an additional $250 million in notes. 

Related: The Blockchain Group to raise $340M for Bitcoin treasury

The notes are convertible into either cash, GME stock, or a mix of both, depending on GameStop’s decision.

GameStop fell earlier on Q1 results

The latest offering comes as GameStop reported a $44.8 million profit in the first quarter, reversing a $32.3 million loss from Q1 2024. 

However, revenues fell 17% to $732.4 million, missing industry expectations and triggering a considerable fall in after-hours on June 10.

GME shares have been down since first Bitcoin purchase

According to Google Finance, GME shares have fallen 18.5% since GameStop confirmed its first Bitcoin purchase on May 28.

When factoring in the 11.7% fall in after-hours, GameStop has now erased all the gains it made since March 25, when it first announced plans to invest in Bitcoin.

GME’s stock movement contrasts with most public companies that have seen their share prices rise after announcing Bitcoin purchases or plans to do so.

Magazine: Older investors are risking everything for a crypto-funded retirement

]]> https://earlybirdsinvest.com/gamestop-plunges-12-after-proposing-new-1-75b-debt-offering/feed/ 0 41504 https://earlybirdsinvest.com/gamestop-raising-another-1-75b-for-potential-bitcoin-purchases/ https://earlybirdsinvest.com/gamestop-raising-another-1-75b-for-potential-bitcoin-purchases/#respond Wed, 11 Jun 2025 22:24:35 +0000 https://earlybirdsinvest.com/gamestop-raising-another-1-75b-for-potential-bitcoin-purchases/

Fresh from successfully convincing game retailer GameStop to add Bitcoin to its balance sheet, Strive Asset Management CEO Matt Cole has now set his sights on fintech firm Intuit to do the same.

Cole said in an April 14 open letter to Intuit CEO Sasan Goodarzi that Intuit’s growth is admirable, but Bitcoin (BTC) is the best way to ensure the company’s long-term success and hedge against any potential disruption caused by artificial intelligence.

Intuit’s flagship products are its tax preparation app TurboTax and the small business accounting software Quickbooks. The company laid off 10% of its staff in July to pursue its AI endeavors, but Cole said the firm needs an additional hedge because TurboTax is at risk of being automated away by AI. 

“While we appreciate Intuit’s own investments and internal implementation of AI, we believe an additional hedge is warranted, and that a Bitcoin war chest is the best option available,” Cole said. 

That Bitcoin war chest, he added, will ensure Intuit has “enough strategic capital to weather the AI storm and act from a position of strength through the turbulence of the AI revolution.” 

Cole sent a similar letter to GameStop CEO Ryan Cohen in February to advise the gaming retailer to use its $4.6 billion in cash to buy Bitcoin. 

GameStop’s Cohen acknowledged the letter in an April 1 regulatory filing and revealed his company had finished a convertible debt offering that raised $1.5 billion, with some proceeds earmarked for buying Bitcoin.

Strive urges Intuit change crypto policy

In his letter to Intuit, Cole said the firm should reconsider the acceptable use policy for its marketing platform Mailchimp, which he claims has continued to suspend crypto-related accounts over policy violations.

Cole said he “remains concerned that Intuit’s censorship and de-platforming policies discriminate against Bitcoin enthusiasts, which may harm long-term shareholder value.”

Mailchimp has said that crypto-related content isn’t necessarily banned under its policy, and crypto content can be sent provided the sender isn’t involved in the sale, exchange, or marketing of crypto. 

Related: Saylor signals Strategy is buying the dip amid macroeconomic turmoil

Its current acceptable use policy states that the platform might not allow accounts that offer “cryptocurrencies, virtual currencies, and any digital assets related to an initial coin offering.” 

According to Cole, Mailchimp likely adopted its policies when the legal status of crypto and related businesses was uncertain, but said with the crypto-friendly Trump administration, it’s time to “amend the acceptable use policy to end the blanket ban on crypto-related businesses.”

Intuit did not immediately respond to a request for comment.

Magazine: Bitcoin eyes $100K by June, Shaq to settle NFT lawsuit, and more: Hodler’s Digest, April 6–12

GameStop (NYSE: GME) suffered a sharp 25% drop yesterday, a sudden downturn that followed a 16% rally on March 26. The catalyst? A bold decision by the gaming retailer’s board to establish a Bitcoin treasury—joining the ranks of MicroStrategy, Metaplanet, and other corporations. Initially, the news sent GME shares soaring, as investors viewed the move as a bullish signal. However, the stock quickly reversed course and now finds itself in turbulent waters.

Investor optimism over GameStop’s Bitcoin play was palpable at first. The announcement sparked excitement similar to when MicroStrategy began accumulating Bitcoin. Yet the initial rally gave way to heavy selling pressure, erasing nearly $3 billion in market value. While the company has not fully detailed its strategy or timeline for Bitcoin acquisitions, the market’s whiplash response has prompted widespread debate.

GameStop’s ‘Convertible Arbitrage’ Factor

On X, analyst Han Akamatsu offered an explanation rooted in parallels to MicroStrategy’s past financing methods. He began by noting: “Let me explain to you why GameStop is falling today, as far as I understand based on my MSTR experience.”

According to Akamatsu, when MicroStrategy previously issued convertible notes, large institutional buyers used a strategy known as convertible arbitrage: “When MSTR issued convertible notes, institutional buyers used convertible arbitrage: They bought the bonds, shorted MSTR stock to hedge [and] waited for the bond to either convert or mature.”

He emphasized that this process created “artificial short pressure” on the stock—despite MicroStrategy’s own bullish outlook on Bitcoin. Akamatsu then referenced MicroStrategy’s 2021 issuance: “In 2021, MSTR issued $1.05B of 0% convertible notes, the stock dipped after the announcement due to hedging shorts, but later exploded when Bitcoin ripped and the arbitrage unspooled.”

Akamatsu went on to connect these dots to GameStop’s current situation: “GME is following the same blueprint now:Issue $1.3B in 0% convertibles, likely going to buy Bitcoin [and] institutions are now shorting GME to hedge.”
He pointed out that if GME or Bitcoin rises substantially, the short positions set up to hedge the convertibles could be unwound en masse: “If GME or BTC goes up a lot, the trade gets very interesting as we have a squeeze opportunity here.”

He further explained the typical ratio of shorts involved: “A common practice is to short 50–70% of the bond’s notional value in stock. They make money on the arbitrage between the bond conversion price and the stock price, even if the stock stays flat or drops.”

Finally, Akamatsu noted that the volume-weighted average price (VWAP) would influence the conversion price: “VWAP pricing window behavior, they’ll want the stock low to get favorable conversion. Conversion price will be based on GME’s VWAP […] from 1:00 PM to 4:00 PM EDT on the pricing day.”

Criticism Over the Risk

Some market watchers have criticized GameStop’s board for incurring what appears to be self-inflicted selling pressure. One user on X questioned whether Chairman Ryan Cohen (often referred to by the initials RC) had miscalculated: “Hi Han, great analysis as usual… however, nearly $3bn market value is wiped out today. RC should really ask himself if it is worth it or he miscalculated. The hedge is supposed to mitigate risk in nature. But itself creates much more risk.”

Akamatsu stood by his take, asserting: “Calculated and all going according to plan. If you’re not really into the MSTR playbook, I recommend you to check their strategy.”

In another post, Akamatsu drew comparisons to a setup he observed with Celsius Holdings (NASDAQ: CELH): “GME has a similar pattern with what CELH had when I claimed this was an easy 100% setup.”

He referenced chart analyst Thomas Bulkowski’s work on wedge patterns, hinting that a retracement might offer a buying opportunity: “If GME starts retracing after that solid breakout, textbook Bulkowski says that 7/10 times price tests the wedge again and then has a greater takeoff.”

The analyst reassured traders not to panic if the stock dips further, stressing it could be a standard technical move: “So, if you see GME retrace … don’t panic as this will be normal. You’ll have another chance at a great entry when this tests the wedge again.” He concluded on a hopeful note: “I’m having my fingers crossed this will simply skyrocket.”

At press time, GME stood at $22.30.

Featured image created with DALL.E, chart from TradingView.com