GameStop’s $1.3B Bitcoin Investment Sparks Market Speculation

GameStop News $1.3B Convertible Debt Plan Fuels Crypto Market Surge

GameStop plans to sell $1.3 billion worth of convertible debt to raise funds to buy more Bitcoin (BTC) tokens just one day after announcing the company's Bitcoin (BTC) treasury plans.

Gamestop to Raise $1.3B Through Convertible Notes

As per the GlobeNewswire release, Sales of the convertible senior notes would total $1.3 billion, with maturities of five years, targeting qualified institutional buyers, the company said. In addition, the first 15 buyers would have a 13-day option to buy up to a third of that amount of notes, which would result in a potential total raised of $1.5 billion.

The notes will have a zero percent coupon and will mature on April 1, 2030, unless converted, redeemed, or repurchased earlier. GameStop intends to use proceeds from the offering to invest in general corporate purposes, including to purchase Bitcoin in accordance with its Investment Policy.

GME Follows MSTR’s Strategy

With this move, GameStop joins others that have issued convertible debt to buy Bitcoin: Michael Saylor’s microStrategy (MSTR), Semler Scientific’s (SMLR), Marathon Digital’s (MARA), and Riot Platforms’s (RIOT) convertible debt sales. Also, recently, Michael launched a poll on X asking what level of bitcoin GME would have to buy to get taken seriously by Bitcoiners.

GameStop's move has been in line with the approach software company Strategy, which last year was known as MicroStrategy, but under CEO Michael Saylor, Strategy has bought up more than 447,000 BTC tokens, now the largest corporate Bitcoin holding.

The connection between the two companies was first hinted at last month by GameStop CEO Ryan Cohen, who posted a picture of himself with Strategy’s Michael Saylor on the social networking site X. That post instigated some early speculation that GameStop would be interested in cryptocurrency.

GME stock has jumped 10% since news of GameStop Bitcoin came out. The broader meme coin market has seen considerable gains with DOGE, SHIB, PEPE, and FLOKI trading in the green for a second day in a row.

The 1-hour chart shows a great bullish trend, after which there is a consolidation phase that forms a symmetrical triangle shape that indicates an impending breakout (often followed by more bullish patterns), which generally continues in the same direction of the previous trend. The RSI at 54.53 points towards neutral momentum, and there could still be room for further gains while the MACD points closer to a bullish crossover. This would prove that the upward momentum is more likely.

If the price breaks above the upper trendline around $0.00260, there is a possibility of a rebound towards 0.00280 - 0.00300 (depending on the projected measured move), but if the price breaks below $0. 00240 support range there could be a retracement towards 0.00220 - 0.00210 before any potential rebound.

According to Coinglass Derivatives Data, during the last 24-hours the trading volume increased by 90.59% to $1.37 million, proving there is a definite increase in market activity and interest in the asset. Further to that, the open interest increased by 10.48% to $200.48K, which means there seems to be an increase in new trade openings, which could mean more volatility and price action.

Source: TradingView