GameStop plans $1.4 billion stock swap as Bitcoin collateral risk emerges

GameStop has agreed to swap $1.4 billion of zero-coupon convertible notes for stock, a deal that would retire about one-third of its note principal if it closes. The resulting shareholder dilution will remain unknown until the company discloses the final share count.

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 would have about $1.1 billion of the 2030 notes and $1.7 billion of the 2032 notes remaining.

Both series carry a 0% interest rate, which means that the exchange would not reduce GameStop's current cash interest expense. Instead, it would replace $1.4 billion of future repayment obligations with newly issued shares.

A 35-consecutive-trading-day volume-weighted average price period began Aug. 3, 2026, and will help determine how many shares noteholders receive shortly before closing. A minimum per-share price also applies, but its value remains undisclosed.

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