GameStop Issues Convertible Debt for Bitcoin Acquisition

Just 24 hours after pursuing a bitcoin treasury strategy, GameStop (GME), led by CEO Ryan Cohen, has announced it will issue convertible debt to raise funds for bitcoin acquisitions.

The company plans to raise $1.3 billion through convertible senior notes with a five-year maturity. Additionally, the underwriter greenshoe allows for up to an extra $200 million.

According to a press release, “GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s Investment Policy.”

By doing so, GameStop joins the ranks of other firms like Michael Saylor-led Strategy (MSTR), Semler Scientific (SMLR), Marathon Digital (MARA), and Riot Platforms (RIOT) that are also issuing convertible debt for bitcoin purchases.

Despite an 11.7% gain in the regular trading session on Wednesday, GME shares dropped 7% in after-hours trading. Meanwhile, Bitcoin recovered slightly to $87,000 after falling to $86,000 earlier in the day.