Bitcoins
- GameStop announced a US$1.75B (AU$2.69B) private offering of convertible senior notes.
- Proceeds will support general purposes aligned with its investment policy.
- GameStop previously purchased 4,710 Bitcoin, worth US$512M (AU$787M) at disclosure
GameStop has announced a private offering of US$1.75 billion (AU$2.69 billion) in zero-coupon convertible senior notes, its second major fundraising move in recent months.
The company stated that the proceeds will be used for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions”. That investment policy was updated in March to include Bitcoin as a permitted Treasury Reserve Asset.
Although the company did not confirm whether the funds raised through this new offering would be used to buy Bitcoin, its prior convertible note sale earlier this year was followed by a large Bitcoin acquisition. The 4,710 Bitcoin were worth about US$512 million (AU$787 million) at the time of disclosure, but no average purchase price was provided.
Related: GameStop Shares Skyrocket As ‘Roaring Kitty’ Schedules YouTube LiveStream
Note Structure Allows Cash or Stock Settlement at Maturity
The new unsecured notes, due 15 June 2032, bear no interest and will not accrue in principal. GameStop may settle conversions in cash, stock, or both, with pricing and conversion terms to be determined at issuance. Final terms, including the conversion price and rate, will be decided at pricing.
The company is offering the notes to qualified institutional buyers under Rule 144A of the Securities Act. Purchasers will also have a 13-day option to acquire up to US$250 million (AU$384 million) more in notes.
Shares of GameStop fell 10% in after-hours trading to US$25.64 (AU$39.42), after a 5% drop during the day. The company’s shift toward digital assets has drawn comparisons to Bitcoin-focused firms like Strategy (formerly Microstrategy), with CEO Ryan Cohen’s association with Strategy’s Michael Saylor reinforcing this narrative.
Related: Bitcoin Buyers Club: These Companies Just Added BTC to Their Balance Sheets
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