GameStop (GME) Announces Plans to Raise Up to $1.3 Billion to Buy Bitcoin

Retail company GameStop (GME) has announced plans to raise up to $1.3 billion to buy Bitcoin for its treasury. This comes just a day after the company announced BTC's

Retail company GameStop (NYSE:GME) has announced plans to raise up to $1.3 billion to buy Bitcoin (BTC) for its treasury. This comes just a day after the company announced the addition of BTC to its treasury reserve.

GameStop To Raise $1.3 Billion To Buy Bitcoin

In a press release, GameStop (GME) revealed plans to offer $1.3 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers.

The retailer company also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on and including the date on which the notes are first issued, to purchase up to an additional $200 million aggregate principal amount of notes.

GameStop stated that it expects to use the net proceeds from the offering for general corporate purposes, including acquiring Bitcoin in a manner consistent with the company’s Investment Policy.

This move comes just a day after the company updated its investment policy to add BTC as a treasury reserve after the board’s approval.

Commenting on this move, MicroStrategy (NASDAQ:MSTR) co-founder Michael Saylor had a interesting reaction. In an X post, he raised a poll, where he asked what’s the min amt of #Bitcoin that $GME will buy to be respected by #Bitcoiners.

Interestingly, the company looks to be adopting MicroStrategy’s model of raising funds to buy Bitcoin through stock offerings. However, the company has a lot of catching up to do to match the firm’s Bitcoin stack.

Saylor’s company recently purchased 6,911 Bitcoin, bringing its total holdings to 506,137 BTC. While GameStop has a long way to go, it seems to be making significant progress in expanding its cryptocurrency holdings.

Earlier this year, reports emerged that GameStop had accumulated a substantial BTC fortune, estimated to be around 17,746 Bitcoin, valued at approximately $583 million.

At the time, the company’s treasury was said to be holding a diverse range of cryptocurrencies, including Ethereum (ETH), Litecoin (LTC), and Ethereum Classic (ETC), in addition to Bitcoin.

However, the company had yet to disclose these holdings in its SEC filings. It remains to be seen how the company will use the funds from its new offering to buy more Bitcoin.

GME Stock Drops Over 6%

MarketWatch reports that GameStop’s stock price fell more than 6% amid the company’s plans to offer its convertible notes.

Earlier today, the GME stock had surged over 30% between yesterday’s announcement and the early hours of trading. However, this drop comes amid concerns that the offering of these notes could lead to a dilution of existing shares.

The stock price could still surge in the long term, especially considering how MicroStrategy’s Bitcoin Strategy has positively impacted the MSTR stock price.