GAMESTOP told investors that it plans to raise $ 17.5 billion in convertible notes a day after adding 4,710 BTC to the loan table. Personal offering is for qualified institutional buyers. There is no cash interest and will come in mid -2032.
Convertible notes provide high flexibility
According to the press release, the new debt of Gamestop will allow you to use low capital without paying regular interest. If the stock is higher than the strike price, investors can convert notes into stocks.
There is also an option to sell additional $ 250 million notes within two weeks of issuance. The mobile signal GAMESTOP is looking forward to the firm demand of big investors.
Image: Goctienao
Despite a big plan, stocks fall over
Based on the report, GME stocks slipped to $ 28.55 (about 5%) after fundraising news. This decline follows the weaker Q1 performance in the core video game business.
As gamers continued to switch to download and streaming services, profits missed Wall Street’s estimates. Many merchants seemed puzzled to focus on Bitcoin rather than games.
The peer company joins Bitcoin Run
Some companies have switched to debt to buy more BTCs. US President Donald Trump’s media venture has raised $ 12 billion for this purpose, while METAPLANET, headquartered in Tokyo, is increasing $ 5.4 billion.
Strategy, Strive Asset Management and Semler Scientific Tapped Debt Market. They all see Bitcoin as a long -term value store despite swinging.
Risk and the next stage
Gamestop’s notes problem can be diluted by adding and switching leverage. Selling a rapid Bitcoin can be forced to write about books. If the BTC price falls, the credit ratio may weaken.
Gamestop should explain how to spend more money regardless of more bitcoin, store upgrade or new partnership. Investors will closely watch the clues about where the company is heading next.
Gamestop is now wearing two hats. It is a retailer and a Shinjin Bitcoin Holder. The success of this funding depends on how well both sides of the story progresses. If digital sales begin and Bitcoin continues to climb, investors can be warm to ideas. Otherwise, you can focus on the game business more clearly.
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