Crypto
Home›Crypto›Market Structure›GameStop to swap $1.4 billion in convertible notes for…
GameStop to swap $1.4 billion in convertible notes for stock
The deal would retire about one-third of the note principal, but GameStop says the exchange share count will be disclosed later in an 8-K.
GameStop has agreed to swap $1.4 billion of zero-coupon convertible notes for stock, a transaction it says would retire about one-third of the notes’ principal if the exchange closes, according to CryptoSlate.
Because the final number of shares to be issued remains undisclosed until GameStop files additional details, the resulting shareholder dilution would not be known until the company reports the final share count in a later 8-K. The agreement also starts a 35-consecutive-trading-day volume-weighted average price period on Aug. 3, 2026 to help determine how many shares noteholders receive, with a minimum per-share price that also has not been specified in the filing.
The company’s Aug. 3, 2026 filing covers about $400 million of notes due in 2030 and $1 billion due in 2032. If the transaction closes, GameStop expects to leave about $1.1 billion of the 2030 notes and $1.7 billion of the 2032 notes outstanding, and it notes that the 0% interest rate means the swap would not reduce its cash interest expense.
CryptoSlate also notes the exchange is tied to Bitcoin collateral risk: GameStop previously disclosed that most of its Bitcoin was held through a receivable rather than directly under company control, with 4,709 of its 4,710 BTC pledged to Coinbase Credit under a covered-call strategy as of May 2, 2026. GameStop warned that it is possible noteholders could trade shares or adjust related derivatives before closing, potentially increasing volatility in its stock or notes, and it expects the deal to close around Sept. 23, 2026, subject to customary conditions.
Latest closeBitcoin $64,049.56 ▲0.9%