GameStop (GME), the video game retailer that became a meme stock sensation, is at it again, this time with a $1.75 billion convertible senior note offering. The company’s latest move? Well, it plans to use the proceeds for investments that align with its very forward-thinking Investment Policy. And what’s this investment policy all about, you ask? GameStop’s aiming to add Bitcoin to its treasure chest, as revealed in a March release.
The Fine Print and Market Reaction
Now, before you get too excited, there’s a catch: today’s offering is only available to qualified institutional buyers. And, because who doesn’t love a little extra opportunity, purchasers have the option to snag another $250 million in notes within two weeks of the initial offering. These notes? They’re like that trendy, no-interest credit card you love; they don’t pay regular interest and will mature in June 2032. Unless, of course, GameStop decides to convert or repurchase them sooner.
Let’s not forget that, back in March, GameStop raised a cool $1.5 billion from a previous convertible note offering. With that, the company went on a shopping spree and bought a hefty 4,710 bitcoins for about $500 million in May.
But here’s the kicker: GME shares dived, falling 11% in after-hours trading. Guess we’ll have to wait and see if this latest crypto gamble pays off.
Emily Johnson
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