GameStop has announced an increase in its convertible bond offering to $2.25 billion, indicating a deeper commitment to establishing its corporate BTC treasury.
Debt Offering Increase
In a press release published on Thursday, GameStop announced that it would be offering investors more convertible bonds following a similar multi-billion-dollar raise in March.
Conversion Terms
The $2.25 billion offering targets 'qualified institutional buyers' and is expected to close on June 15, 2032, unless converted or repurchased earlier. The latest batch of convertible bonds, which will carry no interest, will have a conversion price of approximately $28.91 per share, representing a 32.5% premium over the company's average stock price on June 12.
Investments in Bitcoin
GameStop will also allow initial purchasers to buy up to an additional $450 million in notes within 13 days of the initial issuance. While companies like MicroStrategy have successfully increased their Bitcoin holdings, it remains unclear whether GameStop will make another Bitcoin purchase. However, the company does intend to use the net proceeds from the latest convertible debt offering for 'general corporate purposes,' which may indicate further investments in Bitcoin.
Thus, GameStop continues to pursue its strategy of enhancing Bitcoin reserves, evidenced by the substantial increase in its attractive bond offerings.
