Store Completes$ 1.5 Billion Giving to Fund Bitcoin Reserve

Video game retailer GameStop said Tuesday that it has completed a$ 1.5 billion offering of convertible senior records to investors, with plans to use the money in part to purchase Bitcoin to hold in its corporate treasury.

GameStop announced its Bitcoin programs last week, initially adding the advantage to its list of acceptable government property before announcing that it planned to boost$ 1.3 billion via the giving. A additional$ 200 million worth of records were also sold, according to the agency’s Tuesday registration with the SEC, as was previously listed as an opportunity for the primary purchaser.

The price of the convertible top notes—which did competent on April 1, 2030—left Store with about$ 1.48 billion in gross proceeds, less discounts for the original purchaser and company expenses. As previously stated, the issuing notes that the company “expects to use the net proceeds from the providing for standard business purposes, including the acquisition of Bitcoin”.

By selling convertible top notes to power Bitcoin purchases, GameStop is taking a site out of the playbook of Strategy, the public business with the largest number of BTC in its bank. As of this writing, Strategy holds 528, 185 BTC, or just over$ 45 billion worth, since it began buying the leading cryptocurrency in 2020.

In February, GameStop CEO Ryan Cohen shared a photo of himself with MicroStrategy co-founder and Executive Chairman Michael Saylor, a vocal advocate for corporate Bitcoin treasury reserves.

While initial excitement over GameStop’s Bitcoin move fueled a rise in the firm’s stock price early last week, investors did not appear thrilled with the idea of GameStop raising more debt to launch its crypto reserve. GME fell sharply late last week following that announcement, and remains down nearly 22 % over the last week.

But GME did tick up on Tuesday, including after hours following the SEC filing. GME finished Tuesday up 1.3 % at a price of$ 22.61, and has climbed another 1.4 % or so since the close of trading.