GameStop Leans On Convertible Notes For $1.75 Billion Raise

Barely 24 hours after announcing a massive Bitcoin purchase, GameStop has announced an intention to raise $1.75 billion from investors.

GameStop is intending to raise $1.75 billion from investors via a private offering of convertible senior notes, the company announced on Thursday.

The video game retailer will be offering the notes to qualified institutional buyers and has an option to increase the offering by another $250 million of notes within 13 days of the issuance.

GameStop’s disclosure adds that the convertible notes will not bear regular interest and will mature in mid-2032. The company will use the funds raised from the convertible senior notes to make investments in accordance with its investment policy.

Recently, Gamestop acquired BTC 4,710, triggering the belief that the incoming raise will be used for its Bitcoin accumulation policy.

“GameStop intends to use the net proceeds from the offering for general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions,” the statement reads.

GME Stock Down But Bitcoin Accumulation Spree Gathers Steam

Amid the proposed private offering to raise nearly $2 billion, GameShop’s stock has taken a massive hit over the last day. At the last check on Thursday morning, GME is trading down by 5% to trade at $28.55.

However, a lackluster Q1 financial result is putting downward pressure on the stock after the company missed revenue estimates and earnings expectations.

According to TipRanks, analysts expected Q1 revenue of $2.38 billion, while the company reported $2.24 billion. In the first quarter, GameStop's net loss was $109.4 million, compared to the expected loss of $95.32 million.

Several companies with an interest in Bitcoin are raising funds to use for their BTC purchase, continuing in the manner of MicroStrategy’s strategy.

Last week, Trump Media announced plans to raise $1 billion via a convertible preferred stock offering to fund its treasury operations, possibly with Bitcoin.

Moreover, Metaplanet is planning to raise $5.4 billion from investors to fund its Bitcoin acquisition plans as part of a new investment fund.

The move comes after Semler Scientific announced plans to sell convertible preferred stock to raise $500 million for its Bitcoin treasury.