GameStop announced an increase in its previously disclosed offering of convertible senior notes. The company upsized its latest convertible debt offering to $2.25 billion from $1.75 billion, signaling a deeper commitment to establishing its corporate BTC treasury.
GameStop Increases Note Sales To $2.25B For Potential Bitcoin Buys
GameStop said in a press release published late on Thursday that it would be offering investors more convertible bonds, following a similar multi-billion-dollar raise in March.
The $2.25 billion offering targets “qualified institutional buyers” and is expected to close on June 15, 2032, unless converted or repurchased earlier.
The embattled video game retailer’s latest batch of convertible bonds, which will carry no interest, will have a conversion price of roughly $28.91 per share, which may change “in some events.” The conversion price of the notes represents a 32.5% premium compared to the company’s average stock price on June 12.
GameStop will also allow initial purchasers to purchase up to an additional $450 million in notes within 13 days of the initial issuance.
Companies like Michael Saylor’s Strategy (formerly known as MicroStrategy) have been able to boost the amount of Bitcoin they own per share by raising funds at a premium relative to their BTC stash and putting that cash into the benchmark crypto. The company, which owns over 582,000 BTC — nearly 3% of the token’s total possible supply — has seen its stock rocket by over 900% in the past year, in the wake of Bitcoin’s rally to new all-time highs.
Whether GameStop will make another Bitcoin purchase is less clear. Though the company indicated that it intends to use the net proceeds of the latest convertible debt offering for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy,” which may signal more Bitcoin purchases from the video game behemoth.
Following the March announcement of the Bitcoin treasury strategy, GameStop raised $1.5 billion through another convertible note offering. The company subsequently purchased 4,710 Bitcoins for roughly $500 million in May.
