GameStop to Raise $1.3B Through Convertible Debt for Bitcoin Acquisition
Just a day after unveiling its plan to add bitcoin (BTC) to its balance sheet, GameStop (GME) is tapping the debt markets to fuel its crypto ambitions.
The company announced a $1.3 billion offering of convertible senior notes with a five-year maturity and a 0% interest rate. The deal also includes an option for underwriters to purchase an additional $200 million. GameStop stated that proceeds will be used for “general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s Investment Policy.”
By taking this route, GameStop follows in the footsteps of companies like Strategy (MSTR), Semler Scientific (SMLR), MARA Holdings (MARA), and Riot Platforms (RIOT), which have leveraged convertible debt to bolster their BTC holdings.
In response to the news, GME shares slipped 7% in after-hours trading after gaining 11.7% earlier in the day, while bitcoin rebounded to $87,000 after briefly dipping to $86,000.
