GameStop hints at its next bitcoin buy. The stock is tumbling.

By James RogersThe videogame retailer has proposed a $1.75 billion bond dealGameStop Corp. shares were tumbling Thursday after the company announced that it plans to raise more debt - a move that could indicate another bitcoin purchase is looming for the videogame retailer and original meme stock.The Grapevine, Texas-based company (GME) announced a proposed private offering of $1.75 billion of convertible senior notes after Wednesday's closing bell. GameStop is also giving initial purchasers the option to buy up to an additional $250 million aggregate principal amount of notes.The stock was down more than 23% in afternoon trading Thursday - putting it on pace for its biggest daily percentage decline since March 27, when it fell 22.11%, per Dow Jones Market Data. GameStop shares, which were trading under $22 at last check, are also on pace for their lowest close since April 8, when they closed at $23.39.Proceeds from the debt offering will go to general corporate purposes, "including making investments in a manner consistent with GameStop's investment policy and potential acquisitions," the company said in a statement.This is not the first time that GameStop has raised debt this year. On April 1, the company completed a $1.5 billion bond deal. It then announced its first purchase of bitcoin (BTCUSD) the following month.Related: GameStop may be a bitcoin play, but its stock is sliding on weaker-than-expected first-quarter revenueGameStop's purchase of 4,710 bitcoin tokens occurred between May 3 and June 10, the company said in a statement that accompanied its first-quarter results on Tuesday.Earlier this year, GameStop's board unanimously approved an update to its investment policy to add bitcoin as a treasury-reserve asset - following the same path taken by software company and bitcoin play MicroStrategy Inc. (MSTR), which now does business as Strategy.Related: Why GameStop is trying to be the next MicroStrategy with its bitcoin moveThe videogame retailer ended the first quarter with cash, cash equivalents and marketable securities of $6.4 billion, up from $1 billion at the end of the same period last year.GameStop shares are down more than 30% in 2025, compared with the S&P 500 index's SPX gain of 2.8%.-James RogersThis content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.