Key Takeaways
- GameStop raised $1.5 billion through a convertible note sale.
- The company has board approval to add Bitcoin to its balance sheet.
- Proceeds from the offering may already be funding Bitcoin purchases.
GameStop has finalized a $1.5 billion convertible note offering, potentially positioning the company to make significant Bitcoin purchases.
The sale includes the full exercise of a $200 million greenshoe option, bringing net proceeds to $1.48 billion after fees.
Bitcoin investment intentions
The company first disclosed its Bitcoin intentions alongside its fourth-quarter earnings report last week.
CEO Ryan Cohen announced that the board had approved a new investment policy allowing Bitcoin to be added to GameStop’s corporate treasury.
Flexible capital structure
The five-year convertible notes offer a flexible capital structure, and the proceeds are expected to be used at least in part for Bitcoin acquisitions.
A Monday regulatory filing confirmed the transaction’s completion after the close of U.S. trading.
Future Bitcoin purchases
While it’s unclear if purchases have already started, the move suggests that the video game retailer may soon join other public companies holding Bitcoin on their balance sheets.
Market reaction
Shares of GameStop (GME) rose 1.35% during regular trading Monday and climbed another 0.8% after hours.
Bitcoin traded at $84,900 at the time of the announcement.
