Video Game retailer GameStop said Wednesday it plans to provide investors with $1.755 billion worth of convertible senior notes, according to a company’s press release.
The memo, which is not expected to be of interest, will mature in 2032, the company said, adding that conversion prices for the offering will be determined at a later date. Convertible Notes allow buyers to convert their obligations into common stock under certain conditions.
GameStop bought 4,710 Bitcoin last month, but the company did not explicitly state in a blog post whether the funds would stockpile the largest cryptocurrency by market value or other cryptocurrencies previously on its balance sheet.
Instead, the company said the funds are heading for “general corporate purposes, such as investing in ways that match GameStop’s investment policy and potential acquisitions.” GameStop said in March it updated its investment policy to allow Bitcoin use “as a protected Treasury asset.”
According to Yahoo Finance, Gamestop’s stock price fell 10% after trading, falling to $25.64. The company’s shares fell 9.5% from $28.36 as the company signaled it plans to buy Bitcoin on March 26th.
GameStop completed the initial provision of convertible senior notes in early April. This concludes the $1.5 billion GameStop offers $1.48 billion in net revenue, $1.5 billion with discounts for initial buyers and reduced company costs.
The company said it purchased Bitcoin Stash between May 3rd and June 10th, but did not specify in detail the average purchase price or the amount spent overall. At the time of the announcement, 4,710 Bitcoin is worth $512 million, suggesting that the company has not spent all the money it has raised on Bitcoin.
Texas-based Gamestop held $4.7 billion in cash and cash equivalents, according to the latest revenue report in March. This is a significant increase from $921 million a year.
GameStop CEO Ryan Cohen hinted at the possibility of buying Bitcoin in February. He took a photo he shared with Strategy Executive Chairman and Co-Founder Michael Saylor and X.
The Strategy is the largest Bitcoin finance company with over $63 billion in BTC that began purchasing in 2020.
Edited by Andrew Hayward
