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GameStop announced the issuance of $1.75 billion in zero-interest convertible bonds, and the market speculates that its funding will continue to be invested in Bitcoin, or signal its transition to a holding company. This article analyzes the logic behind its strategy.

GameStop issues $1.75 billion in bonds, why is the market reacting so strongly?

In mid-June, GameStop (GME) once again became the focus of financial media and the crypto community. This time, it was not due to “meme hype,” but because the company announced the issuance of $1.75 billion in zero-coupon convertible bonds for “general corporate purposes,” including “investments and potential acquisitions in accordance with its investment policies.”

The convertible bonds issued this time will mature in 2032, with an interest rate of 0%, and are only available to qualified institutional investors. Buyers can choose to subscribe for an additional $250 million in shares within the next 13 days. These types of bonds are typically used by companies for financial flexibility, and GameStop’s vague statements have sparked more speculation from the outside.

Bitcoin takes center stage again, and GameStop’s investment strategy transformation signal is evident.

The key point is that GameStop had already purchased 4,710 Bitcoins in cash between May and June 2025. It is worth noting that GameStop’s board approved the inclusion of Bitcoin as part of the company’s asset allocation strategy back in March this year. This means that Bitcoin is not a one-time purchase, but rather a core component of GameStop’s financial strategy.

With the new round of bond issuance, the market generally expects this portion of funds to further flow into Bitcoin. This shift makes GameStop no longer just a “video game retailer,” but rather a company moving towards a crypto-holding model similar to MicroStrategy.

Stock prices fell sharply by 11%, is retail investor sentiment cooling?

Figure:https://finance.yahoo.com/quote/GME/

However, the market’s reaction has not been positive. Since GameStop first confirmed the purchase of Bitcoin on May 28, its stock price has dropped by more than 18%, and on the day of announcing a new round of debt financing, GME even plunged 11% in after-hours trading. This is in contrast to the historical cases of companies like Tesla and MicroStrategy, which saw their stock prices soar upon announcing Bitcoin holdings. The reason may lie in the fact that GameStop has not clearly outlined its capital allocation path, leading investors to worry that the ‘crypto transformation’ lacks strategic transparency, especially against the backdrop of its main business continuing to decline.

In addition, GME has repeatedly become a target of retail speculation due to the influence of KOLs like Roaring Kitty, but its strategy has now gone beyond “meme speculation,” and it remains to be seen whether the crypto market will respond.

GameStop’s long-term ambition: a holding company or a “crypto pioneer”?

Market analysts, such as Tetron Invest, point out that GameStop’s behavior is increasingly resembling a transition to a “diversified holding company” rather than a single business entity. They noted: “GameStop is not just looking to hold Bitcoin; they may also acquire equity in crypto projects and even expand into other assets in AI or Web3.”

In light of GameStop’s termination of certain store expansion plans and restructuring of its financial structure, it may be more inclined to transform into an investment-oriented entity in the future. This is similar to the direction taken by X (formerly Twitter) led by Elon Musk and MicroStrategy promoted by Michael Saylor.

Summary: The final chapter of traditional retail, the prologue to Web3 strategy?

Under the dual pressure of e-commerce impact and store contraction, GameStop’s transformation into a cryptocurrency asset holding platform is a “self-revolutionary” choice. However, the market is still waiting for more answers—does it have a clear asset allocation logic? Can it become a capital node in the Web3 world?

Despite the current pressure on GME stock price, the long-term value logic of Bitcoin remains strong. If BTC can return above $70,000, GameStop’s financial situation will significantly improve, and it may even attract more traditional companies to follow suit.