GameStop Locks In $2.25B to Power Its Post-Retail Transformation
Written by our partner, InvestGame.
US-based video game retailer GameStop (NYSE: GME) has announced a $2.25B private offering of 0.0% convertible unsecured senior notes due Jun’32. While the notes carry no interest, investors have the right to convert them into shares at $28.91 (a 32.5% premium to the June 12 volume-weighted average price), offering upside potential if the stock appreciates significantly over time. This structure provides no regular income but appeals to investors seeking long-term equity exposure and potential participation in the company’s future growth. The offering also includes an option to purchase an additional $450m in aggregate principal amount of notes. Proceeds are intended for investments across financial instruments and digital assets, including Bitcoin, following the Investment Policy issued in Mar’25.
Once a dominant physical retailer for video games and consoles, GameStop, founded in 1984, struggled as the industry shifted online. In early 2021, the company became the face of a retail investor movement as Reddit’s r/WallStreetBetstriggered a historic short squeeze, turning GameStop into a meme stock and reigniting public attention.
Since then, under Chairman and CEO Ryan Cohen, the company has begun repositioning. It cut costs, exited low-performing initiatives such as NFTs, and shifted its focus to categories showing growth. In LTM Q1’25, while total revenue declined 25% YoY, collectibles revenue increased by 10% YoY (or 55% QoQ), driven by strong performance in the trading cards segment.
At the shareholder meeting held on June 12, 2025, Cohen emphasized trading cards as a natural extension of GameStop’s legacy business. Cards now account for 29% of total Q1’25 revenue, surpassing video game software for the first time.
To support its evolving business model, GameStop has actively tapped public and private markets, completing 7 deals with a total value of $6.4B (excl. announced $2.25B notes offering in Jun’25). You can access the complete list of GameStop’s financial transactions since 2020, totaling over $8B in activity, by subscribing to our Patreon.
In May’25, the company purchased 4,710 Bitcoin, valued at over $500m, positioning itself among the top corporate BTC holders globally. The investment followed a formal update to its treasury strategy, which now allows for capital deployment into digital assets.
Cohen stated that future crypto purchases would not be pre-announced, emphasizing that Bitcoin serves as a strategic reserve asset aligned with the company’s longer-term evolution, not a short-term signal.
Despite the narrative shift, investor reaction has been cautious. Following the initial $1.75B convertible notes announcement on June 11, GameStop’s share price fell by 22% on June 12, closing the week at $22.14 on June 13. The sharp decline likely reflects investor concerns around potential dilution, increased risk exposure to volatile assets like Bitcoin, and broader skepticism toward the company’s shift away from its core video game retail business.
The capital raise marks yet another chapter in GameStop’s ongoing reinvention. As the company shifts deeper into digital assets and collectible commerce, it continues to walk a tightrope between transformation and volatility. With investor sentiment wavering and market headwinds in play, GameStop’s next steps will potentially determine whether its changes lead to sustainable value or another speculative cycle.
Notable Transactions
MERGERS & ACQUISITIONS🤝
[Rumor] According to Bloomberg, China-based tech giant Tencent (SEHK: 700) is currently exploring the possibility of acquiring a 44.4% stake in South Korea-based gaming company Nexon America (TYO: 3659) for approximately $15B via acquisition of stake held by NXC Corp. Tencent and Nexon reportedly engaged in acquisition discussions as early as 2019, but were unable to agree on valuation terms at the time.
VENTURE FINANCING 💰
Sweden-based mobile app developer Studio555 has received $4.6m in a seed funding round led by HOF Capital and Failup Ventures. The investment will support the company’s general purposes and the development of its app, a gamified mobile application for interior design. The release is set for 2026. The company was founded by veterans from King, with developers from Paradox Interactive, Rovio, and EA.
US-based web3 game developer Orange Cap Games has raised $3.5m in a Seed funding round led by 1kx and Yuga Labs, with participation from Bing Ventures, Infinity Ventures Crypto, and angel investors. The funds will support the development of Orange Cap Games’ projects, including its core title, the trading card game Vibes. This round follows a previous $2m raise in Sep’24.
Cyprus-based mobile game developer Nice Plans Studio has raised $3m in a funding round led by Pixeldog, with $600k contributed by the studio’s founders. The funds will support the development of the company’s upcoming mobile title, Ricochet Squad. The developers of Nice Plans Studio previously worked on Tacticool, which was developed by Panzerdog. The game has generated $53m in IAP revenue and achieved 30 million lifetime downloads, according to AppMagic. The company is also preparing for a Series A funding round to expand Ricochet Squad and accelerate its portfolio strategy, which is focused on physics-driven mobile shooters.
India-based gaming startup MetaShot has raised $234k (₹2 crore) in a convertible debt funding round from the KITVEN FUND. The investment will be used to support market expansion and overall company growth. MetaShot, a virtual cricket gaming company that also develops cricket bat hardware, previously raised funding in Jan’25.
Israel-based in-game advertising solutions provider Anzu.io has raised an undisclosed sum from Amex Ventures. The investment will support Anzu’s efforts to transform traditional marketing channels through in-game advertising. The company offers advertisers and developers cross-platform in-game ad and monetization solutions. This marks Anzu’s fifth funding round since 2019, bringing its total funding to $83.5m. Previous rounds include a $6.5m Series A in 2019, a $9m Series A extension in Feb’21, a $20m round in Mar’22, and a $48m Series B in Jun’23.
UK-based game developer Lighthouse Games has secured an undisclosed investment from China-based tech giant Tencent (SEHK: 700). The funds will support the studio’s growth and the development of an unannounced AAA title. Lighthouse Games was founded by Gavin Raeburn, former founder of Playground Games and a former leader at Codemasters. This marks Tencent’s second investment in the studio, following a previous undisclosed funding round in Jul’23.
PUBLIC OFFERINGS 📈
Poland-based PC & Console game developer President Studio S.A. listed on the NewConnect platform, with an initial valuation of $13.2m (PLN 52.9m). The company offered existing shares in its IPO, and by the end of the first day of trading, the stock had risen by 113%. President Studio is a subsidiary of PlayWay Group and is known for developing I Am Your President and Crime Scene Cleaner.
FUNDRAISING 💼
Singapore-based web3 infrastructure provider Soneium has launched the Soneium For All incubator in partnership with Startale and ASTAR Global Network, running through late Jul’25. The incubator targets developers of gaming and consumer applications within the Soneium ecosystem, with the first projects expected to launch as early as Q3 2025. Selected participants will build on a production-ready, high-traffic network, supported by household IP and organizers’ global infrastructure. The program will offer support in overcoming go-to-market challenges, including user acquisition, technical scalability, and marketing exposure through Soneium’s official channels.
Japan-based gaming corporation Bandai Namco Entertainment (TYO: 7832) has announced the expansion and rebranding of its Bandai Namco Entertainment 021 Fund to the Bandai Namco 021 Fund. The fund’s budget will increase from $8m at inception to $40m, with an expanded investment scope that now includes game development studios, in addition to its original focus on metaverse, blockchain, and VR technologies. The fund will operate globally, aiming to strengthen Bandai Namco’s publishing and marketing capabilities through strategic investments.
