GameStop announced an increase in its previous offering of convertible priority bonds. 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 news release that it will offer investors more convertible bonds, following a similar raise of billions of dollars 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 final payment of the convertible bonds of the struggling video game company, which will bear no interest, will be approximately $28.91 per share, a price that is subject to change "in some cases." The conversion price of the bonds represents a 32.5% premium compared to the average share price of the company on June 12.
GameStop will also allow early buyers to purchase up to an additional $450 million in bonds within 13 days of the initial issuance.
Companies like Michael Saylor's Strategy (formerly known as MicroStrategy) have managed to increase their Bitcoin per share holdings by raising funds at a price higher than the value of their Bitcoin inventory and investing that money in the benchmark digital currency. The company, which owns over 582,000 Bitcoins – nearly 3% of the total potential supply of the currency – has seen its shares soar over 900% in the past year, following Bitcoin's rise to new record levels.
It is unclear whether GameStop will make another Bitcoin purchase. The company has indicated its intention to use the net proceeds from the latest convertible debt issuance "for general corporate purposes, including investment in accordance with GameStop's investment policy," which may suggest more 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 purchased 4,710 Bitcoins for about $500 million in May.
