GameStop and Tether Bet Big on Bitcoin in Treasury Shake-Up

Two major players from vastly different industries — video game retailer GameStop and stablecoin issuer Tether — have made significant Bitcoin acquisitions in the first quarter of 2025, signaling a growing trend among companies to diversify their balance sheets with digital assets. GameStop announced the completion of a $1.5 billion private offering of convertible notes to fund its Bitcoin purchases, while Tether acquired 8,888 Bitcoin worth approximately $750 million, increasing its total holdings to over $8.4 billion. Both moves come amid ongoing regulatory discussions and market debate over the role of Bitcoin in corporate treasury strategies.

GameStop Raises $1.5 Billion to Buy Bitcoin, Signaling Bold Treasury Strategy Shift

Video game retailer GameStop has officially closed its highly anticipated $1.5 billion private offering of convertible notes, revealing in a regulatory filing that it plans to deploy the capital toward acquiring Bitcoin. The move marks a significant strategic pivot for the company, which has long been at the center of meme-stock culture and retail investor speculation.

In a filing submitted to the US Securities and Exchange Commission (SEC) on Tuesday, GameStop confirmed the completion of its private offering of 0.00% convertible senior notes due 2030. The offering included the full exercise of the initial purchaser’s option to buy an additional $200 million in notes, raising the total proceeds to $1.5 billion.

The company stated explicitly that the funds will be used to add Bitcoin to its balance sheet, drawing a clear parallel to the playbook employed by business intelligence firm Strategy (formerly MicroStrategy) in 2020, when it became one of the first publicly traded companies to make large-scale Bitcoin purchases as part of its treasury strategy.

A Bold But Polarizing Move

GameStop’s announcement initially fueled a brief rally in its stock price last week as crypto and equity markets reacted to the news. However, the rally was short-lived. Shares of the company have since pulled back, suggesting a growing skepticism among investors and analysts about the long-term viability and prudence of tying the retailer's treasury strategy to a volatile digital asset.

GameStop stock price (Source: Google Finance)

The decision comes at a time when GameStop is sitting on over $4 billion in cash reserves and has reported $3.8 billion in revenue in 2024, according to its latest financial disclosures. This strong balance sheet could provide the company with enough financial cushion to absorb the risk of exposure to Bitcoin’s price swings.

However, analysts and market watchers remain divided over whether the move represents visionary leadership or a high-stakes gamble.

GameStop’s foray into Bitcoin is reminiscent of Strategy’s pioneering move in August 2020, when the software company initiated its now-famous Bitcoin acquisition strategy. Strategy’s stock soared over the following years as the price of Bitcoin surged, but the company also faced criticism over its heavy exposure to a volatile and largely unregulated asset.

GameStop’s pivot mirrors this strategy almost four years later but comes with key differences. While MicroStrategy’s move was led by CEO Michael Saylor’s personal conviction in Bitcoin as ”digital gold,” GameStop’s decision appears more corporate and tactical, likely aimed at leveraging its meme stock status and the interest of crypto-native retail investors.

Bitcoin’s Role in Corporate Treasuries: Growing Trend or Risky Bet?

GameStop’s move reignites the broader debate about whether corporations should allocate treasury reserves to Bitcoin. While Strategy and Tesla famously added Bitcoin to their balance sheets in the past, many publicly traded companies have remained cautious amid regulatory uncertainty and the inherent volatility of cryptocurrency markets.

Still, GameStop’s announcement may encourage other companies with strong balance sheets and millennial-driven brand equity to follow suit, further blurring the lines between traditional corporations and digital asset ecosystems.

GameStop has yet to disclose the specific details of its Bitcoin acquisition plan, including how much Bitcoin it intends to purchase and when those transactions will occur. Market participants will be watching closely in the coming weeks and months for SEC filings and company statements that could shed light on the scale and timing of its purchases.

Tether Acquires 8,888 Bitcoin in Q1 2025, Expanding Holdings to Over $8.4 Billion Amid Regulatory Scrutiny

Meanwhile, Tether, the issuer of the world’s largest stablecoin USDT, has significantly expanded its Bitcoin holdings in the first quarter of 2025, adding 8,888 BTC to its balance sheet, according to onchain data. The latest acquisition, valued at approximately $750 million at the time of writing, underlines Tether’s ongoing strategy of diversifying its reserves beyond traditional assets such as US Treasurys and cash equivalents.

Blockchain analytics platform Arkham Intelligence tracked the movement of the Bitcoin purchase from a Bitfinex-associated address to a wallet controlled by Tether. This latest transaction brings the company’s total Bitcoin holdings to an impressive 100,521 BTC, currently valued at $8.46 billion.

Bitcoin as a Strategic Reserve Asset

Tether’s aggressive Bitcoin accumulation is part of its broader investment strategy to diversify reserve holdings and generate returns outside of conventional financial instruments. Since 2023, the company has been transparent about its intent to hold Bitcoin as part of its reserve portfolio, positioning the digital asset as a hedge against inflation and geopolitical risk.

This latest purchase also arrives in the wake of regulatory discussions that could have significant implications for Tether’s Bitcoin reserves. In February, JPMorgan analysts suggested that pending US stablecoin legislation might require Tether to liquidate certain ”non-compliant” assets, including Bitcoin, precious metals, and secured loans, to meet new reserve standards.

The report warned that under the proposed bills, Tether could be forced to divest its riskier holdings and replace them with cash or short-term US Treasurys to maintain its status as a compliant stablecoin issuer.

Tether, however, was quick to dismiss the report’s conclusions. A spokesperson for the firm responded publicly, criticizing the analysts for lacking a fundamental understanding of both Tether and Bitcoin. The company emphasized that no stablecoin laws have yet been finalized in the US, and any assertions about forced divestment remain speculative at best.

Tether’s Expanding Investment Empire

Tether’s Bitcoin acquisitions are only one facet of the firm’s increasingly aggressive investment strategy. After posting $13 billion in profits in 2024, Tether has used its massive cash reserves to pursue high-profile and unconventional investments that extend far beyond cryptocurrency markets.

The company has become the world’s seventh-largest buyer of US Treasurys, surpassing major economies such as Canada, Taiwan, and Mexico. Tether’s appetite for strategic investments has also reached mainstream sectors.

In February 2025, Tether acquired a majority stake in Juventus FC, one of Italy’s top football clubs, in a landmark move that shook the sports and financial worlds. A month later, the firm invested €10 million ($10.8 million) in Italian media company Be Water, further embedding itself in Italy’s business landscape.

Additionally, Tether has sought to acquire a controlling interest in South American agribusiness giant Adecoagro, signaling its ambitions to become a diversified financial powerhouse.

Tether’s growing influence is also evident in its prior investments. Video platform Rumble, in which Tether invested $775 million in late 2024, recently launched a wallet feature supporting USDT payments for content creators — a development seen as a move toward greater stablecoin adoption in digital economies.

Recent blockchain data also shows Tether minted an additional $1 billion worth of USDT on the Tron blockchain on March 31, indicating sustained demand for the stablecoin despite regulatory uncertainty and competitive pressures from emerging fiat-pegged tokens.

Historically, large-scale USDT minting has often coincided with upward momentum in Bitcoin prices. Analysts suggest that the increased supply of stablecoins contributes to market liquidity and provides fresh capital inflows into the broader crypto ecosystem.

David Pakman, managing partner at crypto investment firm CoinFund, recently forecasted that the global stablecoin supply could surge to $1 trillion by the end of 2025. If realized, this exponential growth could catalyze further adoption of digital assets, including Bitcoin, and enhance Tether’s role as a market heavyweight.

The Regulatory Crossroads

While Tether’s financial strength and growing investment footprint appear impressive, its Bitcoin strategy could face future challenges. The debate surrounding stablecoin regulation in the United States remains ongoing, and the eventual outcome could force structural adjustments in Tether’s reserve strategy.

For now, Tether shows no signs of slowing down. Its Q1 Bitcoin purchase, combined with a diversified portfolio of investments in finance, sports, media, and technology, signals a clear intent to evolve beyond the realm of crypto markets and become an institutional player on the global financial stage.