GameStop Completes $1.5 Billion Offering of Convertible Senior Notes to Fund Bitcoin Purchases

GameStop announced on Tuesday that it has finalized the $1.5 billion offering of convertible senior notes to investors.

Video game retailer GameStop has completed a $1.5 billion offering of convertible senior notes, securing the funds it plans to use, in part, to purchase Bitcoin for its corporate treasury.

The company announced on Tuesday that it has finalized the offering of the notes to investors, following an announcement last week that it would be adding Bitcoin to its list of acceptable treasury assets and its subsequent plan to raise $1.3 billion through the offering. The final amount raised exceeds the initial plan, with an additional $200 million worth of notes sold, as was originally outlined as an option.

According to the company’s filing with the U.S. Securities and Exchange Commission, the sale of the convertible senior notes, which will mature on April 1, 2030, yielded approximately $1.48 billion in net proceeds after accounting for discounts and expenses. The filing adds that GameStop “expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin.”

GameStop’s strategy of utilizing convertible senior notes to fund Bitcoin purchases aligns with the approach taken by Strategy (formerly MicroStrategy), the public company holding the largest Bitcoin treasury. Strategy currently holds 528,185 BTC, valued at over $45 billion, following an addition of 22,048 BTC for $1.92 billion, at an average price of $86,969 per Bitcoin, announced this week.

GameStop's CEO Ryan Cohen recently shared a photo of himself with MStrategy co-founder and executive chairman Michael Saylor, a well-known proponent of corporate Bitcoin treasury reserves.

While the initial announcement of GameStop's Bitcoin strategy led to a surge in the company's stock price, investor reaction to the debt offering was less enthusiastic. GME experienced a sharp decline late last week following the announcement, with the stock down by 21.65% over the past five days.

This move by GameStop is part of a broader trend of companies increasing their exposure to Bitcoin. As reported yesterday, Strategy, Metaplanet, and MARA Holdings have all announced plans to add to their Bitcoin holdings.

MARA Holdings, a Bitcoin miner, plans to sell up to $2 billion worth of its stock to fund further Bitcoin purchases, mirroring Strategy's strategy of utilizing market offerings to acquire Bitcoin. Meanwhile, Metaplanet, a Tokyo-based company, is planning to issue debt to fund additional Bitcoin acquisitions.