GameStop Secures $1.3B in Convertible Debt to Invest in Bitcoin

GameStop to Raise $1.3B Through Convertible Debt to Fund Bitcoin Purchases

Just a day after revealing plans to add bitcoin (BTC) to its balance sheet, GameStop (GME) is doubling down by issuing $1.3 billion in convertible senior notes to help finance its BTC acquisition.

The five-year notes, which carry a 0% interest rate, include an option for underwriters to purchase up to an additional $200 million. According to the company’s press release, the proceeds will be used for “general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s Investment Policy.”

By taking this approach, GameStop joins a growing list of firms leveraging convertible debt to buy bitcoin, including Strategy (MSTR), Semler Scientific (SMLR), MARA Holdings (MARA), and Riot Platforms (RIOT).

Following the announcement, GME shares slid 7% in after-hours trading, retreating from a 11.7% gain during the regular session. Bitcoin, which had dipped to $86,000 earlier in the day, bounced back above $87,000 after the news broke.