GameStop, a video game and consumer electronics retailer, has announced an increase in its planned private convertible note offering to $2.25 billion, reflecting its commitment to expanding its corporate Bitcoin treasury.
Increase in Bond Offering
GameStop has upsized its private convertible note offering to $2.25 billion, with the sales expected to close on June 17. This marks an increase of nearly $500 million from the initial $1.75 billion offering.
Intentions for Bitcoin Investment
The funds raised will be used for 'general corporate purposes, including making investments consistent with GameStop’s Investment Policy'. This may signify continued investments in Bitcoin after the recent purchase of 4,710 BTC valued at about $513 million.
Shareholder Reactions
Market reaction to the news of the upsizing has seen GameStop shares drop over 22% on June 12. Investors expressed dissatisfaction with the chosen strategy despite potential benefits from a corporate Bitcoin treasury. The company's first-quarter performance also showed declining revenues, contributing to negative sentiments.
The increase in GameStop's bond offering highlights its intentions to bolster its position in the cryptocurrency sector; however, negative shareholder reactions and falling revenues raise questions about the company's future.
