GameStop’s $2.7B Total Raise Sets Stage for Potential Bitcoin Expansion

GameStop has raised $2.7 billion through a convertible notes offering and may allocate part of the proceeds to Bitcoin under its revised treasury policy, though future crypto purchases remain unconfirmed. GameStop Completes $2.7 Billion Fundraise Video game retailer GameStop has concluded a major fundraising effort, securing a total of $2.7 billion through the sale of zero-coupon convertible senior notes. According to a filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday, the latest $450 million raised came via a greenshoe option exercised in full by the original purchaser. This follow-on sale arrived just a week after GameStop’s initial $2.25 billion private placement. The convertible notes, maturing in 2032, are priced to convert into GameStop Class A common stock at $28.91 per share, which is a 32.5% premium over the company’s volume-weighted average share price on June 12, the day of the original offering. Potential Bitcoin Allocation on the Table In its official statement, GameStop confirmed that proceeds from the offering would be deployed for general corporate purposes. Notably, this could include further Bitcoin acquisitions under its updated Investment Policy. The firm first adopted the Bitcoin treasury strategy in May, when it acquired 4,710 BTC, valued at $512 million at the time of purchase and approximately $506 million at current prices. With Bitcoin trading near $107,175, GameStop’s treasury strategy places it within a growing cohort of public companies turning to the cryptocurrency as a hedge against inflation and a long-term reserve asset. Following, Not Copying, the Bitcoin Treasury Playbook GameStop’s pivot toward Bitcoin has drawn comparisons to Strategy’s high-profile crypto accumulation model. The connection was further highlighted when GameStop CEO Ryan Cohen appeared in a widely circulated photo alongside Strategy Chairman Michael Saylor in March, shortly before GameStop hinted at its Bitcoin intentions. However, Cohen has been careful to distance his firm from replicating any specific strategy, stating in a recent interview, “We’re not going to call our shots in advance, we’re not following anyone else’s strategy.” While Strategy continues to announce regular Bitcoin purchases, GameStop’s future moves in the crypto space remain deliberately opaque, with no confirmed timelines for further acquisitions. Market Reaction Muted Despite Strategic Moves Despite the headline-making Bitcoin purchases and significant capital raises, GameStop’s stock performance has not reflected investor enthusiasm. The company’s share price fell over 10% to $30.73 following its initial Bitcoin purchase announcement in May. A further dip followed the disclosure of its second convertible notes offering, even as the fundraising total increased through the greenshoe exercise. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice

Source: Crypto Daily