GameStop raises an additional $450 million through follow-on note issuance, potentially for BTC acquisition

BlockBeats News, June 25 — Video game retailer GameStop (GME) filed documents with the U.S. Securities and Exchange Commission (SEC) on Tuesday, revealing that the company has raised an additional $450 million through a follow-on offering of zero-coupon convertible senior notes.

This new issuance comes just one week after its initial $2.25 billion private placement, bringing the total amount raised in this round to $2.7 billion. The company stated that this additional issuance was executed under a 13-day option granted to the initial purchasers, who fully exercised the so-called “greenshoe option.” These notes, maturing in 2032, can be converted into GameStop Class A common stock at a price of $28.91 per share, representing a 32.5% premium over the volume-weighted average price at the time of the initial issuance on June 12.

The funds raised will be used for general corporate purposes and “investments in line with GameStop’s investment policy,” including allocating Bitcoin (BTC) as a treasury reserve asset. GameStop is among a growing number of publicly traded companies adopting a crypto asset reserve strategy. Its approach of raising funds through stock and bond offerings to allocate to BTC and other crypto assets closely mirrors the strategy of Michael Saylor’s MicroStrategy (MSTR). After completing a $1.3 billion convertible bond issuance in May this year, the company made its first purchase of approximately $500 million worth of Bitcoin, acquiring 4,710 BTC.