The video game giant follows Michael Saylor’s strategy by investing in Bitcoin as a corporate reserve.
On March 26, GameStop announced its intention to raise $1.3 billion through a private offering of senior convertible notes and will use the net proceeds from this offering for “general corporate purposes, including the acquisition of bitcoin.” The move comes a day after the company revealed an update to its investment policy, allowing the purchase of bitcoin as a treasury reserve asset.
Offering details
The offering consists of a total principal amount of $1.3 billion in 0.00% senior convertible notes due in 2030. Additionally, the company plans to grant initial buyers an option to purchase up to an additional $200 million in notes within a 13-day period from the initial issuance date.
The notes will be general unsecured obligations and will not bear regular interest or appreciate in value. They will mature on April 1, 2030, unless converted, redeemed, or repurchased earlier. Upon conversion, GameStop will have the option to settle in cash, Class A shares, or a combination of both. The initial conversion rate and other terms will be determined at pricing.
The bitcoin acquisition plan could mark a strategic shift for the video game retailer. Following the news, GameStop shares surged by 11%.
