- GameStop announced a $1.75 billion convertible senior note offering to select institutional investors.
- Funds will be used to invest according to the company’s investment policy, which now allows adding Bitcoin to its reserves.
- The offering has an option for an additional $250 million in notes within two weeks of the initial issue.
- The notes have no regular interest and mature in June 2032, unless converted or repurchased sooner.
- This follows GameStop’s earlier $1.3 billion raise and a May purchase of 4,710 bitcoin valued at about $500 million.
GameStop announced on Wednesday that it plans to raise $1.75 billion by issuing convertible senior notes to qualified institutional buyers. The company will use the proceeds to make investments aligned with its current investment policy.
According to a recent company press release, at least part of the funds will be used for “making investments in a manner consistent with GameStop’s Investment Policy.” A March release explains that this policy now allows GameStop to hold bitcoin as a treasury reserve asset.
The offering targets qualified institutional buyers only and includes an option for investors to purchase up to $250 million more in notes within two weeks of the initial sale. The convertible notes do not offer regular interest payments and are set to mature in June 2032, unless converted to shares or repurchased earlier.
In March, following the updated treasury strategy, GameStop raised $1.3 billion through a similar note offering. The company then used about $500 million of those funds in May to purchase 4,710 bitcoin.
Shares of GameStop fell by 10% in after-hours trading following the announcement. For more details, see the company’s press release here.
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