GameStop Corp. (NYSE: GME) Raises $1.3 Billion By Selling Convertible Notes to Buy Bitcoin

GameStop Corp. (NYSE: GME) announced today that it intends to raise $1.3 billion through a private offering of convertible senior notes and will use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin.

GameStop Corp (NYSE:GME) announced its intention to raise $1.3 billion through a private offering of convertible senior notes and use the net proceeds for general corporate purposes, which may include the acquisition of Bitcoin. The move follows the company's announcement to update its investment policy to allow Bitcoin to be used as a treasury reserve asset.

The offering consists of $1.3 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2030. The company also plans to grant initial purchasers an option to buy up to $200 million more in notes within a 13-day period from the first issuance date.

The notes will be general unsecured obligations of the company and will not bear regular interest or accrete in value. They will mature on April 1, 2030, unless converted, redeemed, or repurchased earlier. Upon conversion, the company will have the option to settle in cash, shares of its Class A common stock, or a combination of both.

The initial conversion rate and other terms will be determined at the time of pricing of the offering. The company stated that it expects to use the U.S. composite volume-weighted average price of its stock from 1:00 p.m. to 4:00 p.m. Eastern Daylight Time on the pricing date as the reference for the initial conversion price.

The notes will be sold in a private placement exempt from registration under the Securities Act of 1933. Neither the notes nor any shares of common stock issuable upon conversion have been or will be registered under the Securities Act or any state securities laws. As a result, they may not be offered or sold in the United States without registration or an applicable exemption.

There are no assurances that the offering will be completed as described or at all. The company may cancel the offering at any time.

This announcement follows GameStop's update to its investment policy, which will allow the company to invest in and hold Bitcoin as a treasury reserve asset and engage in lending activities with crypto-products. The company also plans to explore and expand its operations in the Web3 ecosystem.

The move is part of GameStop's broader strategy to innovate and expand its business. The company has been exploring new opportunities in recent months, including partnerships with blockchain companies and the launch of its own NFT marketplace.

GameStop's pivot toward Bitcoin and Web3 marks a significant shift for the company and could have a major impact on its future. The company's stock price has soared in recent months, and investors will be watching closely to see how this new chapter in GameStop's story unfolds.

The company's announcement to update its investment policy to allow Bitcoin comes a day after reports that Michael Saylor met with GameStop CEO Ryan Cohen. Saylor, the CEO of MicroStrategy (NASDAQ:MBI), is a well-known Bitcoin bull who has been urging companies to adopt the cryptocurrency as a reserve asset.

Saylor's company, MicroStrategy, has already invested billions of dollars in Bitcoin, and Saylor has been open about his belief that Bitcoin is the best-performing asset class of the past decade.

It is no secret that Saylor has been advising several executives on the importance of Bitcoin, especially during a time when the cryptocurrency market is performing poorly.

Last month, Saylor met with GameStop CEO Ryan Cohen to discuss Bitcoin and how it can be used by companies. The meeting was first reported by TheStreet and later confirmed by MicroStrategy.

"Can confirm that Michael met with Ryan Cohen last night to discuss Bitcoin and how it can be used by companies to navigate the current economic landscape," a MicroStrategy spokesperson told the outlet.

This meeting could be a factor in GameStop's decision to update its investment policy to allow Bitcoin. The company also plans to explore and expand its operations in the Web3 ecosystem.

GameStop's pivot toward Bitcoin and Web3 marks a significant shift for the company and could have a major impact on its future. The company's stock price has soared in recent months, and investors will be watching closely to see how this new chapter in GameStop's story unfolds.

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