GameStop (GME) Accumulated 4,710 Bitcoins in Q1 2023

GameStop Corp. Cl A (NYSE: GME), an established gaming retailer that has gained popularity as a meme stock company, has announced on Wednesday, June 11, plans to raise $1.75 billion.

GameStop (NYSE:GME) disclosed plans to sell 0 percent convertible senior notes due 2032 in a private offering for total proceeds of $1.75 billion. The company has also granted initial investors an option to purchase an additional $250 million of notes within 13 days from the issuance date.

What Happened: The gaming retailer said the offering of the notes is part of its strategy to strengthen its balance sheet. The company aims to use the net proceeds from the offering for general corporate purposes, including making investments in a manner consistent with its Investment Policy and potential acquisitions.

Although the company did not explicitly state in the announcement that the funds will be used in Bitcoin purchases, speculations point to a potential imminent BTC acquisition by GameStop.

As Coinpedia reported, GameStop added Bitcoin to its treasury management in a move to hedge against inflation. The company accumulated 4,710 Bitcoins for $512 million in the first quarter.

With the demand for Bitcoin rising exponentially, GameStop is likely to aggressively accumulate more BTCs in the near future through harnessing its stock market.

The company’s stock dropped over 5 percent to trade at $25.23 on Wednesday. The company, which is currently valued at about $13.49 billion, saw heightened volatility with investors showing worry about further stock dilution.

Also Read: GameStop Is Making A Metaverse Game, Hints At New Products In Works

Why Is This Important: The company, which began the year with a Bitcoin holding of 382 and an average price of $62,800, went on to buy 4,328 Bitcoins for a total of $450.38 in the first quarter as part of its strategy to manage treasury and hedge against inflation.

The move comes as GameStop continues to focus on new revenue streams and avenues for growth. The company has been investing heavily in e-commerce and technology, and it is also exploring opportunities in the metaverse and Web3.

GameStop’s Bitcoin purchases have been a major talking point among investors this year. The company’s stock price has soared in recent months, and many investors believe that the company’s Bitcoin strategy will be key to its long-term success.

The company’s stock price is currently down over 11 percent to trade at $25.23 at the time of writing.