GameStop, the owner of Bitcoin, raises the size of its convertible note offering to $2.25 billion as part of its plans to acquire Bitcoin.
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GameStop announced an increase in its previous offering of convertible senior notes. The company raised the size of its latest convertible bond issuance to $2.25 billion from $1.75 billion, indicating its strong commitment to establishing its own Bitcoin treasury.
GameStop increases its cash sales to $2.25 billion for potential Bitcoin purchases.
GameStop said in a late Thursday press release that it will offer investors more convertible notes, following a similar multi-billion dollar raising 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 last tranche of the struggling video game company's convertible bonds, which will carry no interest, will be valued at approximately $28.91 per share, a price that is subject to change "in some cases." The conversion price of the bonds represents a premium of 32.5% compared to the company's average share price on June 12.
GameStop will also allow early buyers to purchase up to an additional $450 million of the notes within 13 days of the initial offering.
Companies like Michael Saylor's "Strategy" (formerly known as MicroStrategy) have been able to increase their Bitcoin per share by raising funds at a higher price than their Bitcoin inventory value and investing that money in the benchmark cryptocurrency. The company, which owns over 582,000 Bitcoin - nearly 3% of the total potential supply of the currency - has seen its shares rise sharply by over 900% in the past year, following Bitcoin's rise to new record levels.
It is unclear whether GameStop will make another purchase of Bitcoin. Although the company indicated its intention to use the net proceeds from its latest convertible debt issuance "for general corporate purposes, including investment in accordance with GameStop's investment policy," which may suggest further Bitcoin purchases from the video game giant.
After announcing its Bitcoin strategy in March, GameStop raised $1.5 billion through a convertible bond offering. The company then bought 4,710 Bitcoin for about $500 million in May.
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