GameStop Prepares $1.4 Billion Stock Swap Amid Bitcoin Collateral Risk

GameStop is planning to swap $1.4 billion of zero-coupon convertible notes for stock, which could retire about one-third of its debt if the deal closes.

The company's filing shows that it has begun a 35-day VWAP period, and if the transaction goes through, GameStop would have about $1.1 billion of the 2030 notes and $1.7 billion of the 2032 notes remaining.

The exchange agreement does not carry an interest rate, meaning it won't reduce GameStop's current cash interest expense. Instead, it will replace future repayment obligations with newly issued shares.