📍GameStop raises $1.75 billion to buy more Bitcoin

📌 GameStop has just issued $1.75 billion of zero-coupon convertible bonds (with an additional $250 million option), maturing in 2032. This is the third round in less than three months, to continue purchasing Bitcoin according to its digital treasury policy.

📌 Previously, in May, the company used about $512 million to buy 4,710 BTC. In total, they have raised over $4.5 billion through three bond issuances to do this.

📌 In Q1, GameStop had $6.4 billion in cash – despite a 17% drop in revenue year-over-year, it still reported a net profit of $44.8 million thanks to cost-cutting.

📌 Market reaction: GME shares fell about 5% during the session and continued to lose ~11% in after-hours trading following the news.

💭 The Bitcoin strategy shows GameStop is transforming from a traditional game retail business into a “digital treasury,” following in the footsteps of MicroStrategy. This is a “rebranding” of the company to adapt to a new market – but it is also fraught with risks due to Bitcoin's price volatility.