GameStop proposes a billion-dollar bond – investors react with uncertainty!

GameStop proposes a billion-dollar bond – investors react with uncertainty!

On June 14, 2025, GameStop announced its planned $1.75 billion issuance of convertible bonds, causing investor nervousness. The company's shares then fell dramatically. These measures are intended to be used generally for corporate purposes as well as potential acquisitions, such as financial intelligence The shareholder reported. Additionally, first-time buyers can subscribe for bonds worth up to $250 million.

The latest quarterly figures show a 17 percent decline in sales in the first quarter, which is not particularly encouraging for GameStop. Revenue was $732.4 million compared to $881.8 million last year. Additionally, GameStop raised $1.5 billion through convertible notes back in April. The current capital increase could further increase the volatility of the share. On the day of the announcement, the share price fell by over 11 percent in after-hours trading, and overall it lost more than five percent in regular trading.

Strategy and Bitcoin Investments

A central point of market observation is the possible use of the new capital raising for further Bitcoin purchases. GameStop has already acquired 4,710 Bitcoin between May 3 and June 10, and the Bitcoin offensive is seen as both an innovative investment strategy and a risk. Like Crypto Magazine Crypto Magazine explains, this debt raising could indicate even more Bitcoin investments.

At the end of the first quarter, GameStop had $6.4 billion in cash and cash equivalents, providing additional financial flexibility for future investments. Nevertheless, the aggressive Bitcoin strategy is causing mixed opinions among analysts. Some see it as a promising step into the future, while others warn of the risks involved.

In a broader context, the focus is on MicroStrategy, led by Michael Saylor, who is currently in a public dispute with short-term market analyst Jim Chanos over the valuation of MicroStrategy shares. Saylor defends the strategy of his company, which holds around 582,000 Bitcoin worth about $63 billion, while Chanos sees the shares as overvalued. MicroStrategy's market capitalization is more than $100 billion.

Experts are excited about the future development of the Bitcoin market, especially after observing that the Bitcoin price is near a record level of $111,000. Forecasts suggest that the Bitcoin price could reach between $180,000 and $250,000 by the end of the year, and there is even speculation that Bitcoin could exceed $1 million in the long term. In this volatile market, the performance of GameStop and MicroStrategy remains a key topic for investors and market analysts.