GameStop Moves to Raise $1.3B via Convertible Debt for Bitcoin Investment
Just a day after announcing plans to add bitcoin (BTC) to its balance sheet, GameStop (GME) is taking another bold step—issuing convertible debt to fund its BTC acquisition.
Under the leadership of CEO Ryan Cohen, the company is set to raise $1.3 billion through convertible senior notes with a five-year maturity. Additionally, the offering includes an underwriter greenshoe option for up to $200 million in extra funding. The notes will carry a 0% coupon, making them an attractive option for investors.
According to a press release, GameStop plans to use the proceeds for “general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s Investment Policy.”
This move puts GameStop in the company of other firms like Strategy (MSTR), Semler Scientific (SMLR), MARA Holdings (MARA), and Riot Platforms (RIOT), all of which have previously turned to convertible debt to finance bitcoin purchases.
Following the announcement, GME shares dropped 7% in after-hours trading, retreating from an 11.7% gain during the regular session on Wednesday. Meanwhile, bitcoin saw a slight rebound from its daily lows, climbing back above $87,000 after briefly dipping to $86,000.
