GameStop has told investors it plans to raise $1.75 billion through convertible notes, just a day after adding 4,710 BTC to its balance sheet. The private offering is aimed at qualified institutional buyers. It carries no cash interest and will come due in mid-2032.Convertible Notes Offer High FlexibilityAccording to the press release, GameStop’s new debt will let it tap cheap capital without paying regular interest. Investors can convert the notes into shares if the stock climbs above the strike price.There’s even an option to sell an extra $250 million in notes within two weeks of issuance. That move signals GameStop expects solid demand from big investors.Stock Tumbles Despite Big PlansBased on reports, GME shares slid to $28.55—down about 5%—after the fundraising news. The drop follows a weaker-than-expected Q1 performance in the core video game business.Revenue missed Wall Street’s estimates, as gamers keep shifting toward downloads and streaming services. Many traders seemed puzzled by the focus on Bitcoin rather than gaming.Peer Companies Join Bitcoin RunSeveral firms have turned to debt to buy more BTC. US President Donald Trump’s media venture raised $12 billion for that purpose, and Tokyo-based Metaplanet is lining up $5.4 billion.Strategy, Strive Asset Management and Semler Scientific tapped debt markets too. All of them see Bitcoin as a long-term store of value, despite its swings.Risks And Next StepsGameStop’s note issue adds leverage and could dilute shares if converted. A sharp Bitcoin sell-off might force write-downs on the books. Credit ratios may weaken if BTC prices fall.GameStop will need to explain how it plans to spend the money—whether on more Bitcoin, store upgrades or new partnerships. Investors will watch closely for clues on where the company is heading next.GameStop now wears two hats: it’s a retailer and a budding Bitcoin holder. The success of this funding plan will hinge on how well both sides of the story play out. If digital sales pick up and Bitcoin keeps climbing, investors might warm to the idea. If not, they may push for clearer focus on the gaming business.Featured image from Heise, chart from TradingView