If you’ve been keeping one eye on GameStop since the infamous meme stock explosion, you know the company hasn’t exactly taken the straight-and-narrow path. Now, it’s doing something else a little unexpected—selling convertible debt (basically, loans that can turn into stock) to possibly buy Bitcoin. Yes, Bitcoin. The same company that once launched and then bailed on an NFT marketplace is now flirting with crypto’s golden child. Let’s unpack this mess of a timeline.
GameStop’s Crypto Phase: The Prequel
Back in 2022, GameStop had stars in its eyes for NFTs (non-fungible tokens, aka digital collectibles). It built a marketplace on Ethereum’s layer-2 network Loopring—tech speak for a faster and cheaper version of Ethereum. Then it partnered with Immutable X, another Ethereum-based platform, and even set up a $100 million fund to lure game developers into creating NFT-based games. Spoiler: it didn’t work out.
They dumped the NFT marketplace less than two years later, citing the good ol’ excuse of regulatory uncertainty. And lest we forget, they also scrapped a wallet designed to hold these digital assets. At this point, GameStop had practically ghosted crypto.
Cash In, Peace Out
Before calling it quits, GameStop made sure to cash out. Over the course of 2022 and 2023, they sold off $85 million worth of crypto assets—most notably $47 million worth of IMX, the token from its own partner Immutable. IMX plummeted 23% after the sell-off. Ouch.
And the kicker? They did this before even launching their NFT platform. It’s like selling your concert tickets before the band’s even booked.
Enter Bitcoin: The Comeback Nobody Expected
This week, GameStop announced it plans to raise $1.3 billion via convertible senior notes (think of them as debt that can turn into stock later) and potentially use that money to buy Bitcoin. This move mirrors what another company, Strategy, has been doing since 2020. Strategy now sits on over 500,000 Bitcoins (worth roughly $44 billion), and it’s been funding that crypto stash with similar convertible debt offerings.
In fact, Strategy’s last round raised $2 billion, set to mature in 2030. So yeah, this model works—if you’re intensely committed to Bitcoin world domination.
But Wait, GameStop Hasn’t Bought Any Yet
Just to be clear, GameStop hasn’t bought a single satoshi (the tiniest slice of a Bitcoin). This announcement is more about the intention, though they’ve hinted they might sell any Bitcoin they do buy. So… not exactly diamond hands.
So What Changed?
Leadership, for starters. Former CEO Matt Furlong—who led the NFT charge—was shown the door in 2023. Chairman Ryan Cohen took over and has since been steering the ship. Not-so-coincidentally, Cohen recently posted a pic on X (formerly Twitter) standing next to Strategy’s co-founder and Bitcoin megafan Michael Saylor.
That sent the rumor mill spinning, and now here we are: GameStop gearing up to potentially go full Bitcoin.
The Bottom Line
- GameStop tried NFTs, took the money, and ran.
- It’s now raising cash through convertible debt with an eye on Bitcoin.
- The company hasn’t actually bought any yet and might not even hold onto it for long.
In classic GameStop fashion, it’s a wild pivot. But given its meme stock legacy and ever-changing crypto stance, maybe this is just the next logical chaos.