GameStop Announces $1.3B Convertible Debt Offering to Fund Bitcoin Purchases
Just a day after revealing its plan to add bitcoin (BTC) to its balance sheet, GameStop (GME) is doubling down with a $1.3 billion convertible debt issuance to help finance its crypto strategy.
According to the company’s statement, the five-year notes will carry a 0% interest rate, with an additional $200 million available for underwriters. The proceeds will be used for “general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s Investment Policy.”
By issuing convertible debt for BTC purchases, GameStop joins the ranks of Strategy (MSTR), Semler Scientific (SMLR), MARA Holdings (MARA), and Riot Platforms (RIOT), which have taken a similar approach.
Following the announcement, GME shares dropped 7% in after-hours trading after climbing 11.7% earlier in the day. Meanwhile, bitcoin rebounded to $87,000 after briefly dipping to $86,000.
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