- GameStop increased its convertible senior notes offering to $2.25 billion from the previous $1.75 billion.
- The company’s shares dropped 24% over the week, ending at $22.14 on Friday.
- GameStop acquired 4,710 Bitcoin last month.
- The new convertible bonds carry no interest and have a conversion price set at about $28.91 per share.
- The company stated it will use the raised funds for general purposes, possible acquisitions, and investments according to its policy.
GameStop announced late Thursday that it increased its planned offering of convertible senior notes to $2.25 billion, up from its originally planned $1.75 billion. The retailer made the announcement through a press release.
The company’s shares were steady on Friday, but fell 24% during the week to close at $22.14, according to Yahoo Finance. Earlier in the week, share prices dropped after GameStop revealed it would issue more convertible bonds following a $1.5 billion raise in April.
The new batch of convertible bonds carry no interest, according to GameStop. The company set the conversion price at around $28.91 per share, about a 32.5% premium over Thursday’s average stock price. “Proceeds from the offering will be used for general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions,” GameStop stated in its press release.
Last month, the company purchased 4,710 Bitcoin, entering the cryptocurrency space similarly to firms like MicroStrategy, which aim to boost shareholder value by acquiring Bitcoin. However, GameStop CEO Ryan Cohen has said in a recent interview that the company will not announce future Bitcoin purchases in advance and is not imitating any existing strategy from other companies.
Previously, GameStop attempted to expand its business by launching an NFT (non-fungible token) marketplace, which it closed early last year. At the latest shareholder meeting, Cohen said the company would now focus on trading cards, a segment responsible for 29% of sales in the first quarter as reported by Fortune. Cohen stated, “We’re focusing on trading cards as a natural extension of our existing business. The trading card market, whether it’s sports, Pokémon or collectibles, is aligned with our heritage.”
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