GameStop secured significant investment through a convertible debt offering, with plans to allocate part of the funds for Bitcoin acquisition.
Deal Details
GameStop completed a convertible debt offering, raising $1.5 billion. The initial target of $1.3 billion was increased by an additional $200 million. The company plans to use the proceeds for general corporate purposes, including acquiring Bitcoin in line with their Investment Policy. The bonds are convertible into shares and scheduled to mature on April 1, 2030, unless earlier converted, redeemed, or repurchased.
Market Reaction
GameStop shares did not show significant movement following the closing of the deal. According to Google Finance, on April 1, GameStop’s shares closed up 1.34% at $22.61 and saw an additional 0.5% bump after the bell.
GameStop's Bitcoin Strategy
GameStop received board approval to invest in Bitcoin and US-dollar-pegged stablecoins. This move makes the company a relatively late entrant among public companies adding Bitcoin to their treasuries. Previously, GameStop made attempts to enter the crypto market, closing its crypto wallet in November 2023 due to regulatory uncertainty.
GameStop's initiative to invest in Bitcoin reflects the company's interest in crypto assets despite the cautious market reaction.
