GameStop has announced an increase in the issuance of senior convertible zero-coupon bonds to $2.25 billion. This decision comes after the company’s stock lost over 17% of its value, which is attributed to plans for raising capital and the release of the financial report for the first quarter of 2025.
This is reported by Finway
Bond Issuance Terms and Market Reaction
Initially, GameStop planned to issue bonds worth $1.75 billion, but later revised the amount to $2.25 billion. The new bonds have a zero coupon and do not provide for dividend payments, with a maturity date set for 2032. Additionally, the company has entered into an option agreement for another $450 million, which could potentially increase the total amount raised to $2.68 billion if the option is exercised. The completion of the issuance is expected by June 17, 2025.
Investors have reacted skeptically to the new bond issuance — this is the second issuance in recent months. In April 2025, GameStop had already raised $1.5 billion in this manner.
Financial Results and Fund Utilization Prospects
The funds raised are planned to be directed towards general corporate purposes. In particular, there is a possibility of investing in Bitcoin, as GameStop had previously expressed its intention to form a reserve in this cryptocurrency.
The financial report for the first quarter of 2025 showed a 20.4% year-over-year decline in revenue, down to $732.4 million. At the same time, the company recorded a net profit of $44.8 million for the first time in a while, whereas it had losses during the same period last year.
“GameStop has increased the offering of senior convertible zero-coupon bonds to $2.25 billion. Prior to this, the company’s stock had fallen more than 17% due to investor concerns.”
Regarding stock dynamics, at the time of writing, shares were priced at $22.67, slightly above the closing price of June 12 ($22.14). Over the five-day chart, GameStop (GME) shares have decreased by 23.5%, despite a short-term increase of 3.4% at the market open. 