Shares of the video game retailer have fallen to their lowest level since August 2024, temporarily ignoring rising bond yields, though analysts warn this disconnect is unlikely to persist for long.

The decline was triggered by the company's announcement of a plan to convert $1.4 billion in convertible bonds into common shares through a private transaction, allowing it to repay debt without using cash. Investors interpreted this move as dilutive to existing shareholders, prompting selling pressure.

Year-to-date, GameStop shares are down 3%. Since its attempted acquisition of online marketplace eBay in early May, the stock has lost approximately 27% of its value. eBay rejected GameStop's $56 billion buyout offer. Market participants questioned GameStop's funding sources for the acquisition, directly weighing on the stock price. At the time, investors speculated the company would be forced to take on debt or issue new shares to raise capital, further diluting equity. The unsolicited takeover bid also prompted famed investor Michael Burry to liquidate his entire GameStop position.