GameStop plans $1.4 billion stock swap as Bitcoin collateral risk emerges
GameStop agreed to exchange $1.4 billion of zero-coupon convertible notes for stock, which would retire about one-third of its note principal if completed. The deal covers about $400 million of 2030 notes and $1 billion of 2032 notes; about $1.1 billion and $1.7 billion, respectively, would remain afterward. Because both note series carry 0% interest, the transaction would not lower cash interest expense, only shift repayment obligations into new shares. Final dilution is still unknown until GameStop discloses the share count, which will be set by a 35-day VWAP period and a minimum price floor. Closing is expected around Sept. 23, 2026. GameStop also disclosed that most of its Bitcoin exposure was not directly held. As of May 2, 2026, 4,709 of 4,710 BTC were pledged to Coinbase Credit under a covered-call strategy, leaving only one BTC directly held. The company later renewed the strategy but has not disclosed the updated size or terms, so current exposure remains unclear.
