GameStop Raising Another $1.75B for Potential Bitcoin Purchases
The company made its initial acquisitions of bitcoin in May, buying 4,710 coins for about $500 million.
GameStop (GME), the embattled video game retailer turned meme stock, announced Wednesday a $1.75 billion convertible senior note offering.
Proceeds will be used at least in part for "making investments in a manner consistent with GameStop’s Investment Policy," per a company press release. Said investment policy is to add bitcoin as a treasury reserve asset, according to a March release from the company.
Today's offering, only open to qualified institutional buyers, includes an option for purchasers to buy an additional $250 million in notes within two weeks of the initial issuance,. The notes carry no regular interest and will mature in June 2032 unless they are converted or repurchased earlier.
Following the March announcement of the bitcoin treasury strategy, GameStop raised $1.3 billion through another convertible note offering. The company subsequently purchased 4,710 bitcoin for roughly $500 million during May.
GME shares were lower by 10% in after hours trading.
