GameStop Prepares $1.4 Billion Stock Swap Amid Bitcoin Collateral Concerns

GameStop is planning to swap $1.4 billion of zero-coupon convertible notes for stock, a deal that would eliminate about one-third of its note principal if it closes.

The transaction covers notes due in 2030 and 2032, with the company expecting to have around $1.1 billion of the 2030 notes and $1.7 billion of the 2032 notes remaining after the exchange.

GameStop's zero-interest rate on these notes means that swapping them for stock will not reduce its current cash interest expense but rather replace future repayment obligations with newly issued shares.