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GameStop Corp. (NYSE: GME) has announced plans to raise $1.3 billion through a private offering of convertible senior notes, with a portion of the proceeds earmarked for acquiring Bitcoin (BTC).
Investment Policy Update and Funding Plans
On Tuesday, GameStop’s board of directors unanimously approved the update to its investment policy, enabling the gaming retailer to allocate capital into Bitcoin. The company disclosed its funding plan in a Wednesday press release, stating:
“GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy.”
The move aligns with strategies employed by other corporations, most notably Michael Saylor’s Strategy (formerly MicroStrategy), which has accumulated billions in Bitcoin over the past year. GameStop’s decision marks another instance of a major publicly traded company integrating cryptocurrency into its financial strategy.
Details of the Convertible Senior Notes Offering
The company plans to issue $1.3 billion in aggregate principal amount of 0.00% Convertible Senior Notes due in 2030. Additionally, GameStop intends 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.
GameStop confirmed that the notes will be general unsecured obligations, bearing no regular interest and with no accretion in principal amount.
They are set to mature on April 1, 2030, unless converted, redeemed, or repurchased earlier. Upon conversion, the company has 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, with the U.S. composite volume-weighted average price of GameStop stock from 1:00 p.m. to 4:00 p.m. Eastern Daylight Time on the pricing date serving as the reference for the initial conversion price.
Regulatory Considerations and Offering Uncertainty
GameStop emphasized that neither the notes nor any shares of Class A common stock issuable upon conversion have been or will be registered under the Securities Act of 1933 or any state securities laws. As a result, they cannot be offered or sold in the United States without registration or an applicable exemption.
The company further noted that there is no guarantee the offering will be completed as planned. However, if successful, GameStop will join a growing list of corporations diversifying their balance sheets with Bitcoin, signaling a continued shift toward cryptocurrency adoption in traditional financial markets.
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.
