GameStop unveils $1.3B notes offering to fund Bitcoin acquisition, corporate expansion
GameStop is planning a private offering of $1.3 billion in convertible senior notes to fund general corporate purposes and Bitcoin (BTC) purchases for its treasury, according to a March 26 announcement.
The announcement follows GameStops March 25 disclosure of an updated treasury strategy that will include digital assets.
While the company did not disclose the amount of Bitcoin it intends to acquire, the filing confirmed that part of the funds raised will support the integration of Bitcoin into its balance sheet.
GameStops move aligns with a growing trend of corporations incorporating Bitcoin into their treasury reserves, though such activity has primarily been concentrated among technology or fintech firms.
By allocating proceeds toward Bitcoin, the firm signals a strategic diversification to allocate its over $4.5 billion in cash.
Strategy popularized the issuance of debt to purchase Bitcoin, using this method to add part of the 500,000 BTC held by its treasury. Until 2027, Strategy plans to raise $42 billion to acquire more Bitcoin.
Convertible notes offering
The zero-coupon convertible senior notes, maturing on April 1, 2030, will be issued through a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
The securities will be GameStops unsecured obligations and will not bear regular interest or accrue in principal. Upon conversion, GameStop may settle obligations in cash, Class A common stock, or a combination of both at its discretion.
Initial terms, including the conversion rate, redemption rights, and repurchase features, will be established at the time of pricing. The pricing reference will be based on the US composite volume-weighted average price (VWAP) of GameStops Class A shares on the pricing date.
The company also granted initial purchasers a 13-day option to buy up to an additional $200 million in notes. If completed in full, the offering would bring the total amount raised to $1.5 billion.
The post GameStop unveils $1.3B notes offering to fund Bitcoin acquisition, corporate expansion appeared first on CryptoSlate.
Text source: CryptoSlate
