Gamestop Corp. (NYSE: GME) today announced that it intends to raise $1.3 billion through personal provisions of convertible senior notes and will use the net revenue from the offering for general corporate purposes, including the acquisition of Bitcoin. The move comes the day after the company announced an update to its investment policy, allowing Bitcoin to be used as a reserve asset for the Ministry of Finance.
The offering consists of $1.3 billion principal total of 0.00% convertible senior notes scheduled for 2030. Additionally, the company plans to grant initial buyers the option to purchase notes up to $200 million within 13 days of the initial publication date. Notes are a general unsecured obligation and do not involve regular profits or value adhering. They will mature on April 1, 2030 unless they are converted, redeemed or repurchased previously.
Upon conversion, GameStop has the option to resolve with cash, Class A common stock, or a combination of both. Initial conversion rates and other terms are determined at pricing. The company said it expects to use the average price of US combined volume weighted stock prices from 1pm to 4pm on the pricing date as a reference to the initial conversion price.
GameStop emphasized that shares of common stock that can be issued upon conversion are also registered or not registered under the Securities Act of 1933 or the State Securities Act. As a result, it will not be offered or sold in the United States without registration or applicable exemptions. The company also said there is no guarantee that the offering will be completed as it is listed or offered at all.
This marks GameStop’s key financial decisions as it pivots towards integrating Bitcoin into its corporate strategy. The strategy pioneered by Strategy’s Michael Saylor met in person with GameStop CEO Ryan Cohen last month, which appeared to have influenced GameStop’s decision to accept BTC as a reserve asset.
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