Key Takeaways
- GameStop announced a $1.75 billion convertible bond offering.
- The bond deal has sparked speculation about a new bitcoin purchase.
- GameStop's stock price fell following the announcement.
GameStop Corp., the video game retailer known for its meme stock status, revealed after trading hours on Wednesday that it intends to raise $1.75 billion through a private offering of convertible senior notes.
The Texas-based company made the announcement as its stock price experienced a sharp decline.
Bitcoin buying speculation
The move to issue new debt has triggered speculation that GameStop could be preparing for another significant bitcoin purchase.
The company did not directly confirm its intentions regarding bitcoin, but the timing of the announcement and the scale of the bond deal have drawn attention from market watchers.
GameStop said it plans to raise more debt — a move that could indicate another bitcoin purchase is looming for the videogame retailer and original meme stock.
Market reaction
Following the announcement, GameStop shares tumbled in after-hours trading.
The company, which has previously made headlines for its engagement with digital assets, continues to draw scrutiny from both investors and analysts regarding its financial strategies and potential pivot towards bitcoin-related investments.
The $1.75 billion bond deal is expected to proceed as a private offering, with further details yet to be disclosed. Investors are watching closely for any confirmation on whether proceeds will be used for acquiring additional bitcoin.
