GameStop to Spend $1.3 Billion on General Corporate Needs, Including Bitcoin

In February of this year, rumors surfaced that a well-known video game retailer GameStop considers investing in bitcoin and other crypto assets.

GameStop will invest in bitcoin and other crypto assets, according to rumors that surfaced in February. A month later, the rumors were confirmed by the company itself. It is now reported that GameStop plans to spend $1.3 billion on general corporate needs, including the purchase of bitcoin and other crypto assets, in accordance with the company’s new investment policy.

These huge funds will be raised by GameStop through a private placement of convertible senior notes, which have a maturity date of 2030 and can be converted into Class A shares of the company — for ordinary investors with ordinary voting rights. A convertible bond allows the holder to convert it into a predetermined number of shares if the price of the bond rises to a certain level.

Interestingly, after this announcement, GameStop’s shares fell by about 15%, while after the announcement of plans to purchase cryptocurrencies a month ago — they rose by 20%.

GameStop will join other companies such as Strategy and Tesla, which had already included bitcoin in their investment portfolios.

Source: GameStop