For the second time in 2025, GameStop plans to reduce the value of shares owned by its shareholders. Despite having approximately $6 billion in cash reserves, this move might take investors by surprise. The CEO, Ryan Cohen, has a history of disregarding the dedicated stockholders who rallied to save the company through a grassroots effort on Reddit’s r/wallstreetbets platform back in 2020.
Approximately three months after the previous release of $1.5 billion in notes, GameStop has announced plans to issue $1.75 billion in convertible senior notes, with an additional potential option to raise an extra $250 million in a private offering that is exclusive to institutional investors and not available to the general public who hold the stock.
Read the announcement of the latest round of dilution here:
GameStop Announces Proposed Private Offering of $1.75 Billion of Convertible Senior Notes
June 11, 2025
As a gamer, I’m excited to share that GameStop Corp., where I often buy my gaming gear, plans to sell $1.75 billion worth of special bonds called Convertible Senior Notes in a private offering, subject to market conditions and other factors. These notes, due in 2032, won’t earn interest but can be converted into GameStop shares instead. The initial purchasers of these notes will also have the option to buy an additional $250 million worth within a specific period.
The notes issued by GameStop won’t earn interest or increase in value over time, and they will expire on June 15, 2032, unless earlier changes occur such as conversion, redemption, or repurchase. Upon conversion, GameStop has the option to pay cash, provide shares of its Class A common stock, or a mix of both. The specifics like conversion rate, redemption rights, and other terms will be set during the offering. GameStop anticipates that the initial conversion price for these notes will be based on the average trading volume-weighted price of its Class A common stock during a specific timeframe on the pricing date.
GameStop plans to utilize the funds raised from this sale for various business needs, such as investing according to their investment guidelines and possibly acquiring other companies.
The notes and any potential Class A common stocks that could be issued by converting these notes have not been, and will not be, registered under U.S. federal and state securities laws. As a result, they cannot be sold within the United States or to U.S. citizens, unless there’s an exemption from registration requirements or if the sale occurs outside the purview of these regulations.
As a passionate follower, I want to clarify that this announcement doesn’t invite you to buy or sell any securities. It’s simply sharing information about potential notes. Please note that this isn’t a promise that these notes will be available as described or at all. The completion of the offering is subject to various conditions and regulations, and it may not happen as stated in this release.
GameStop recently announced Q1 2025 financial results, surprising investors as it showed better-than-expected earnings but missed on revenue expectations. This announcement comes between their annual shareholder meeting scheduled for June 12 and the release of these earnings on June 10. It seems there were earlier chances to inform shareholders about this private offering, but instead, we have another round of dilution, adding more debt to the company’s financial situation.
Ryan Cohen, GameStop’s CEO, has won over many GME shareholders with his confidence, but discussions about the “Mother of all Short Squeezes” have largely subsided. There are other stocks with higher short interest ratios and more promising business opportunities. By investing in GameStop in 2025, you’re essentially purchasing a cash-rich balance sheet under leadership who may not be well-versed in the rapidly evolving video game retail industry.
Power to the Players!
byu/TMWTB inSuperstonk
The value of GME shares could potentially increase if Cohen and the board can utilize their funds to create income sources, but regrettably, the company’s “most promising strategies” seem to have resulted in the squandering of nearly a billion dollars on an unsuccessful NFT marketplace, purchasing short-term US Treasury securities, and most recently, investing in Bitcoin.
Previously, I encouraged everyone to unite with me in a challenge against Ryan Cohen, aiming to seize control of the ‘dilution button’.
In straightforward terms: money won’t simply fall into your lap. It’s up to you to create opportunities or accept a life of passivity.
First step: deprive Ryan Cohen of the ‘dilution button’ control.
— Professor (@shortdestroyer) June 12, 2025
Instead of purchasing a holding company linked to a waning physical video game store chain like GameStop, why not directly acquire its assets? The question of whether it’s wise to do so in light of GameStop’s downward trend, with Cohen and the board potentially diluting the company’s stock repeatedly, is one worth considering, totaling approximately $1.75 billion today – and this may not be the only time shareholders find themselves owning a dwindling investment due to such actions.
Remember, the content of this article is intended for educational purposes only. It doesn’t serve as investment advice. Always think about your personal investment timeline, risk preferences, and consult a financial expert before making any decisions based on this information.
Full Disclosure:
Currently, when this article was written, the main stockholder of Shacknews, Asif A. Khan, along with his relatives and Virtue LLC, held these positions:
* Chairman and Chief Executive Officer (CEO)
* Member of the Board of Directors
* Owner of a significant portion of the company’s shares
Long GameStop via GME shares
Long GameStop via GME call options
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2025-06-12 09:28