GameStop to Raise $1.75B via Convertible Notes, Eyes Bitcoin as Reserve Asset

GameStop announced plans on Wednesday to issue $1.75 billion in zero-coupon convertible senior notes, signaling a possible move toward allocating capital into Bitcoin.

GameStop (NYSE:GME) disclosed plans on Wednesday to issue $1.75 billion in zero-coupon convertible senior notes, presenting an avenue for the company to fund its treasury and potentially invest in Bitcoin (BTC).

The offering includes an option for initial buyers to purchase an additional $250 million in notes at par on the same terms and conditions within 45 days from the initial closing, potentially increasing the total raise to $2 billion.

GameStop stated that the net proceeds will be used for general corporate purposes, which may include strategic acquisitions and investments in accordance with its recently updated treasury policy.

In March, GameStop updated its investment policy to allow investing in "digital currencies, digital assets, and cryptocurrency-related instruments," such as Bitcoin, and to allocate capital in accordance with the company’s treasury management strategy.

This signals a possible move by GameStop to invest in Bitcoin, which could be a key focus for the company in the coming months.

Known for its role in the meme stock frenzy of 2021, GameStop has recently become a subject of interest among crypto enthusiasts. Earlier this year, the company disclosed a

bitcoin

holding in its latest 10K filing, sparking speculation among investors.

Earlier this year, GameStop updated its investment policy to allow investing in "digital currencies, digital assets, and cryptocurrency-related instruments," such as Bitcoin, and to allocate capital in accordance with the company’s treasury management strategy. This was a key takeaway from GameStop’s 60-page proxy statement for its upcoming annual shareholder meeting on May 25.

According to the company, the new investment policy is part of its broader strategy to "maximize shareholder value." The company also stated that it will be using a "total return” approach to investing, which takes into account both capital appreciation and income.

GameStop’s move comes as a growing number of companies are considering investing in digital assets as part of a broader treasury diversification strategy.

Earlier this year, German pharmaceutical company disclosed that it had added BTC to its treasury investment portfolio in December 2022.

In March, reports revealed that Andreessen Horowitz (a prominent Silicon Valley venture capital firm) was planning to invest $1 billion in cryptocurrency startups this year.

Additionally, a recent report from CCNow తెలియజేసింది that several large institutions, including BlackRock (NYSE:) and Fidelity, are preparing to launch bitcoin ETFs later this year. These developments suggest that institutional interest in cryptocurrency is rapidly increasing.

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