GameStop plans $1.4 billion stock swap as Bitcoin collateral risk emerges

GameStop has agreed to swap $1.4 billion of zero-coupon convertible notes for stock, a deal that would retire about one-third of its note principal if it closes. The resulting shareholder dilution will remain unknown until the company discloses the final share count.The company's Aug. 3, 2026 filing covers about $400 million of notes due in 2030 and $1 billion due in 2032. If the transaction closes, GameStop would have about $1.1 billion of the 2030 notes and $1.7 billion of the 2032 notes remaining.Both series carry a 0% interest rate, which means that the exchange would not reduce GameStop's current cash interest expense. Instead, it would replace $1.4 billion of future repayment obligations with newly issued shares.A 35-consecutive-trading-day volume-weighted average price period began Aug. 3, 2026, and will help determine how many shares noteholders receive shortly before closing. A minimum per-share price also applies, but its value remains undisclosed.The filing index contains no exchange agreements, and the company said it will disclose the final share count in a later 8-K.GameStop expects the exchange to close around Sept. 23, 2026, subject to customary conditions. Either s...