What to know:
- GameStop is raising $1.3 billion in convertible notes with a 0% coupon. The funds are intended for acquiring Bitcoin.
- Under the leadership of Ryan Cohen, GameStop is emulating the strategy of Michael Saylor, known for successfully raising significant capital through convertible debt to bolster his Bitcoin holdings.
- Just a day prior, GameStop disclosed their plans to start purchasing Bitcoin to include in their balance sheet.
In a strategic move to enhance its Bitcoin reserves, GameStop (GME) is following up on its recent announcement regarding its Bitcoin treasury plans by issuing convertible debt. The company is making available $1.3 billion in convertible senior notes with a five-year maturity, alongside an option for the underwriter to purchase up to an additional $200 million.
“GameStop plans to utilize the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin according to its Investment Policy.”
This development positions GameStop alongside other firms like Michael Saylor’s strategy, Semler Scientific, MARA Holdings, and Riot Platforms, which have also pursued convertible debt for Bitcoin purchases.
As for GameStop’s stock performance, shares dropped 7% in after-hours trading, following an 11.7% increase during regular trading. Despite this, Bitcoin has shown signs of recovery, bouncing back to $87,000 after briefly dropping to $86,000.
