GameStop (GME) has priced its $1.3 billion private placement of convertible senior notes at a conversion rate that values shares at $29.85—roughly 35% above Thursday’s closing price of $22.09.
The zero-coupon notes, due in 2030, are part of the company’s strategy to gain exposure to bitcoin (BTC) by adding it to its balance sheet. Each $1,000 note converts into 33.4970 shares, giving investors an incentive to bet on the company’s long-term vision.
Despite the premium pricing, the market reacted sharply. GameStop shares plunged more than 22% on Thursday as investors showed concern over the pivot toward digital assets. CEO Ryan Cohen remains firm, presenting the move as a calculated use of excess cash to embrace a new financial frontier.
If the raise hits its target, GameStop would become the fourth-largest public holder of bitcoin—nestled between Riot Platforms and Tesla.
