GameStop Doubles Down on Crypto: $1.75B Raise Hints at More Bitcoin Buys

GameStop (GME), known for its dramatic stock market saga, is making headlines again with a new offering of convertible senior notes, this time aiming to raise $1.75 billion. The move has fueled speculation about the company's future plans, particularly its potential continued investment in Bitcoin.

What's Happening?

GameStop announced the offering, available only to qualified institutional buyers, on Wednesday. The notes mature in June 2032 and carry no regular interest. Interestingly, the offering also includes an option for purchasers to acquire an additional $250 million in notes within two weeks.

Bitcoin on the Horizon?

The key detail lies in the stated use of proceeds: "making investments in a manner consistent with GameStop’s Investment Policy." Crucially, that policy, revealed in a March announcement, includes adding Bitcoin as a treasury reserve asset. This suggests the raised capital could be used, at least in part, to further bolster GameStop's Bitcoin holdings.

A Familiar Strategy

This isn't GameStop's first foray into the crypto world. Following the initial announcement of their Bitcoin treasury strategy, the company previously raised $1.3 billion through a similar convertible note offering. This earlier capital was then used to purchase 4,710 Bitcoin for approximately $500 million back in May.

Market Reaction

The market's initial response to the news was somewhat negative, with GME shares dropping by 10% in after-hours trading.

Key Takeaways:

• GameStop aims to raise $1.75 billion through a convertible senior note offering.
• The company's investment policy allows for Bitcoin purchases as a treasury reserve asset.
• This follows a previous $1.3 billion raise and a subsequent $500 million Bitcoin investment.
• The market reacted negatively to the announcement, with GME shares declining after hours.