GameStop has revealed plans to enter the Bitcoin market by raising $1.3 billion through convertible notes.
The company, widely known for its role in the 2021 retail trading boom, announced that it might use part of the proceeds from the offering to buy Bitcoin, following a strategy similar to MicroStrategy’s.
A New Chapter for the Meme Stock
After markets closed on March 26, GameStop disclosed its intention to offer $1.3 billion in convertible notes. While the company did not specify exactly how much of the funds would go toward Bitcoin, the statement confirmed that the funds may be used for general corporate purposes, including the acquisition of Bitcoin under the company’s new investment policy.
This move sent GameStop’s stock (GME) climbing 11%, reaching $28 per share. Bitcoin also responded to the news with a 1% gain, pushing it back above $87,000.
Drawing Parallels to MicroStrategy
Jeff Park, Head of Alpha Strategies at Bitwise, commented that GameStop’s move could have an even bigger impact than MicroStrategy’s Bitcoin strategy. MicroStrategy, led by Michael Saylor, began accumulating Bitcoin in 2020 and is now known as one of the largest institutional holders of the asset.
Park pointed out that when MicroStrategy started buying Bitcoin, it had a market cap of just $1.3 billion—roughly the size of GameStop’s new fundraising round. However, GME’s current market cap is ten times larger, suggesting the potential for a much greater market reaction and long-term impact if the company fully commits to Bitcoin.