GameStop To Raise $1.3 Billion Funds for Crypto Strategy, Stock Dips by 8%

GameStop has announced plans to raise up to $1.3 billion through convertible debt to further increase its Bitcoin holdings. Led by CEO Ryan Cohen, Gamestop is now raising funds through convertible debt to boost its BTC holdings. This comes just a day after the company revealed its Bitcoin (BTC) treasury strategy.

The company plans to issue $1.3 billion in convertible senior notes, with a five-year maturity and a potential $200 million additional raise. The notes will carry a 0% coupon. They will mature on April 1, 2030, unless converted, redeemed, or repurchased earlier. GameStop plans to use the funds raised from the offering for general corporate purposes, including buying bitcoin in line with its Investment Policy.

With this move, GameStop joins companies like Michael Saylor’s MicroStrategy (MSTR), Semler Scientific (SMLR), Marathon Digital (MARA), and Riot Platforms (RIOT), which have also issued convertible debt to fund bitcoin purchases.

Michael Saylor initiated a poll on X, asking how much bitcoin GameStop needs to buy to gain respect from Bitcoiners.

However, GameStop’s stock has fallen over 6% after announcing its plans to offer convertible notes. Despite a 30% surge in stock price following the announcement, concerns about potential share dilution have led to the drop. However, like MicroStrategy’s Bitcoin strategy boosted MSTR, GameStop’s move could drive long-term growth for its stock.

Meanwhile, bitcoin has bounced back from its earlier lows, rising to $87,000 after briefly dipping to $86,000.