GameStop raises another $450 million through subsequent stock offering, possibly to be used to purchase BTC

BlockBeats News, June 25th, Video game retailer GameStop (GME) on Tuesday disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) that the company is once again raising $450 million through a follow-on offering of zero-coupon convertible senior notes.

This additional 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 follow-on offering was triggered by the exercise of 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's Class A common stock at a price of $28.91 per share, representing a 32.5% premium to the volume-weighted average stock price at the time of the initial issuance on June 12.

The raised funds will be used for general corporate purposes and "investments that meet GameStop’s investment criteria," including the allocation of Bitcoin (BTC) as a treasury reserve asset. GameStop is one of the growing number of publicly traded companies adopting a cryptocurrency reserve strategy, raising funds through stock offerings and bond issuances to allocate to cryptocurrencies such as BTC, mirroring the strategy of Michael Saylor's MicroStrategy (MSTR). Following a $1.3 billion convertible bond offering completed in May, the company first allocated approximately $500 million to purchase 4,710 bitcoins.