GameStop’s Wild Bitcoin Adventure: $1.75B and Counting!

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What to know:

  • In a move that can only be described as “bold” (or perhaps “slightly unhinged”), GameStop has announced a new $1.75 billion convertible senior note offering after the close of U.S. trade on Wednesday. 💰
  • Earlier this year, GameStop decided to dip its toes into the murky waters of cryptocurrency, acquiring a whopping 4,710 BTC. Because why not? 🪙
  • In a classic case of “what goes up must come down,” shares were lower by 10% in after-hours trade. Oops! 📉

GameStop (GME), the video game retailer that somehow morphed into a meme stock, has once again made headlines with its audacious $1.75 billion convertible senior note offering. It’s like watching a soap opera, but with more financial jargon and fewer dramatic pauses.

According to a company press release, the proceeds will be used for “making investments in a manner consistent with GameStop’s Investment Policy.” Translation: they’re adding bitcoin as a treasury reserve asset. Because nothing says “financial stability” like a volatile cryptocurrency! 🤷‍♂️

Today’s offering is only open to qualified institutional buyers, which sounds fancy but really just means they’re keeping the cool kids in the club. It includes an option for purchasers to buy an additional $250 million in notes within two weeks of the initial issuance. The notes carry no regular interest and will mature in June 2032 unless they are converted or repurchased earlier. So, basically, it’s a long-term game of financial chicken. 🐔

After announcing their bitcoin treasury strategy in March, GameStop raised $1.3 billion through another convertible note offering. They then went on a shopping spree, purchasing 4,710 bitcoin for around $500 million in May. Talk about a retail therapy session! 🛍️

And just like that, GME shares were lower by 10% in after-hours trading. It’s almost as if the market has a sense of humor! 😂

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2025-06-12 00:05