GameStop, the well-known retail chain, has raised $450 million as part of its convertible notes offering. These funds could be directed towards investments, including Bitcoin.
GameStop Announces Fundraising
GameStop reported to the US Securities and Exchange Commission that a participant in its initial $2.25 billion note offering decided to buy an additional $450 million. These funds will be used for general corporate purposes, including possible investments and acquisitions. While Bitcoin is not specifically mentioned, the company has previously raised the prospect of establishing a treasury with cryptocurrency.
Response to GameStop's Stocks
Following the fundraising announcement, GameStop shares (GME) dropped 2.5% from an opening price of $23.03 to a low of $22.45. Despite a slight rise over the last five days (with shares increasing by 1.8% and closing at $23.55), they also fell 0.38% in after-hours trading. This trend mirrors that from May, when the company's stock fell by 11% after announcing a $500 million Bitcoin purchase.
GameStop's Past Crypto Ventures
GameStop previously ventured into cryptocurrency with the introduction of a crypto wallet for users, which was shut down in November 2023 due to regulatory uncertainties. The company also launched an NFT marketplace, which was ceased in January 2024 for similar reasons. GameStop became known as the first notable example of a meme stock success in 2021, when its stock surged over 1,000% in a month.
While GameStop continues to explore opportunities in the crypto space, the current investments and their impact on the company's stock remain uncertain. The successes of other companies in this sector also raise questions about the effectiveness of GameStop's strategy.
