GameStop Announces New $1.75 Billion Plan for Bitcoin Investments
GameStop has revealed its intentions to raise an additional $1.75 billion through a convertible note offering, with plans to allocate part of these funds to acquire Bitcoin as part of their treasury strategy.
GameStop Announces New $1.75 Billion Plan for Bitcoin Investments
GameStop, the notorious video game retailer that evolved into a meme stock, officially declared a $1.75 billion convertible senior note offering on Wednesday. This decision aims to enhance their treasury strategy by including Bitcoin as an asset reserve.
Previously, the company had purchased 4,710 BTC at a cost of approximately $500 million in May as part of this strategy.
Key Highlights:
- GameStop’s announcement follows a strong interest in the cryptocurrency sector.
- Shares saw a decline of 10% in after-hours trading following this news.
The offering is restricted to qualified institutional buyers and allows a $250 million additional purchase option for notes within two weeks of issuance. These notes are unique as they carry no regular interest and are set to mature by June 2032 unless converted or repurchased ahead of schedule.
For further details, see the company’s recent press release here.
