GameStop Plans $1.3 Billion Bond Offering to Acquire Bitcoin
GameStop Corp. plans to raise $1.3 billion through a convertible bond offering to purchase Bitcoin, marking a strategic shift in its treasury reserves. The bond sale aims for general corporate purposes, including Bitcoin acquisition.
- GameStop's board approved adding Bitcoin to its treasury.
- The company follows the trend set by MicroStrategy, which has heavily invested in Bitcoin.
- GameStop's bonds will mature in 2030 with a conversion premium of 35% to 40%.
- This premium is lower compared to MicroStrategy's previous offerings, indicating a cautious market.
- GameStop's stock dropped 6.6% in after-hours trading to $26.44 following the announcement.
- The current crypto market shows falling prices and increased economic uncertainty.
- Bitcoin is trading approximately 18% below its all-time high from January.
GameStop's entry into Bitcoin investment reflects confidence in its long-term value amid market volatility.