GameStop Raises Additional $450 Million for Bitcoin Investments Through Notes Sale
GameStop (GME) raised $450 million through a follow-on sale of zero-coupon convertible senior notes, as disclosed in a recent SEC filing. This follows a previous $2.25 billion placement, totaling $2.7 billion from the offering.
Key details include:
- The additional notes were sold under a 13-day "greenshoe" option.
- Notes are due in 2032 and can convert into GameStop Class A shares at $28.91, a 32.5% premium over the stock's volume-weighted average as of June 12.
- Funds will be used for general corporate purposes, including acquiring bitcoin as a treasury reserve asset.
- GameStop joins other publicly traded firms adopting a crypto treasury strategy, similar to Michael Saylor's approach.
- In May, GameStop acquired 4,710 BTC for approximately $500 million after a $1.3 billion convertible note offering.
GME shares remained unchanged in Wednesday morning trading.