GameStop Raises $450 Million in Notes, Boosts Bitcoin Holdings by 32.5%

GameStop, a prominent gaming retailer, has recently raised an additional $450 million through the sale of zero-coupon convertible senior notes. This move was announced in a filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday. The latest capital raise follows a $2.25 billion private bond issuance from the previous week, bringing the total amount of capital raised to $2.7 billion.

The additional notes were sold following the full exercise of a 13-day greenshoe option granted to the initial investor. These notes, due in 2032, are convertible into GameStop Class A common shares at $28.91 per share, which represents a 32.5 percent premium to the volume-weighted average of the shares at the time of the initial offering on June 12.

GameStop has stated that the capital raised will be used for general corporate purposes, in line with the company’s investment policy. This policy includes investing in digital assets such as Bitcoin (BTC) as treasury reserves. By adopting this strategy, GameStop joins other public companies that have chosen to hold crypto reserves, similar to the approach taken by Strategy, led by Michael Saylor. GameStop previously implemented this strategy by purchasing 4,710 Bitcoins for approximately $500 million following its $1.3 billion bond offering in May.

This latest move by GameStop underscores the company's commitment to diversifying its investment portfolio and leveraging digital assets as part of its treasury management strategy. The decision to invest in Bitcoin aligns with a broader trend among corporations to explore and adopt cryptocurrencies as a means of hedging against inflation and enhancing financial flexibility. By allocating a significant portion of its capital to Bitcoin, GameStop aims to position itself as a forward-thinking company that is adaptable to the evolving financial landscape.