GameStop Plans To Raise $1.3 Billion To Fuel Bitcoin Buying Spree, Following In Strategys Footsteps
Following in the footsteps of Michael Saylors Bitcoin-buying company Strategy, video game and consumer electronics retailer GameStop announced Wednesday that it intends to issue $1.3 billion of convertible senior notes to kick off its new BTC acquisition plan.
This follows GameStops Q4 earnings report Tuesday where it said it would amend its investment policy to add the leading cryptocurrency as a treasury reserve asset.
Gamestops $1.3 Billion Fundraising Plan To Buy Bitcoin
GameStop plans to raise funds via convertible debt to build its Bitcoin stack. The company offers $1.3 billion in convertible notes without interest payments. The debt can be converted into GameStops class A common stock, with a conversion date and pricing set to be determined later.
These notes will only be available to institutional investors and will mature in 2030.
Gamestop said that holders of its convertible senior notes may receive a mix of cash and shares when the notes are converted at its own discretion.
The Texas-based video game seller said in the press release that proceeds from the sale will be used for general corporate purposes, including the acquisition of Bitcoin.
On March 25, GameStop said it plans to use a portion of its corporate cash or future debt to acquiredigital assets, including Bitcoin and US dollar-backed stablecoins. Per its latest earnings report, the Texas-based firm held $4.7 billion in cash up significantly from $921 million one year prior.
Welcome To Team Bitcoin
With its convertible note offering, GameStop is clearly borrowing a page from Strategys pioneering debt-for-Bitcoin playbook. Strategy has issued billions of dollars of convertible senior notes, raising funds for Bitcoin acquisition. The company unveiled its latest offering of convertible debt in February, raising $2 billion via convertible notes maturing in March 2030.
Last month, GameStop CEO Ryan Cohen hinted at the firms Bitcoin pivot after posing alongside Strategy co-founder and Executive Chairman Michael Saylor in a photo he posted to the X social media platform.
Welcome to Team Bitcoin, Saylor wrote on X Wednesday.
Whether GameStops foray into BTC following Strategys playbook will be as successful remains to be seen.
Text source: ZyCrypto
