GameStop refinances $450 million or will allocate Bitcoin as a reserve asset

On June 25,【Block Rhythm】the video game retailer GameStop (GME) submitted documents to the U.S. Securities and Exchange Commission (SEC) on Tuesday showing that the company raised $450 million through a subsequent issuance of zero-coupon convertible preferred notes.

The recent issuance comes just a week after its initial private placement of $2.25 billion, bringing the total financing amount to $2.7 billion. The company stated that this issuance is based on the execution of a 13-day option granted to the initial purchaser, who fully exercised the so-called "green shoe option." This batch of notes maturing in 2032 can be converted into GameStop Class A common stock at a price of $28.91 per share, representing a premium of 32.5% over the volume-weighted average share price at the time of the initial issuance on June 12.

The funds raised will be used for general corporate purposes and "investments that comply with GameStop's investment policy," including allocating Bitcoin (BTC) as a treasury reserve asset. GameStop is one of the publicly traded companies increasingly adopting cryptocurrency reserve strategies, and its approach of raising funds through stock offerings and bond issuance to allocate to crypto assets like BTC is similar to Michael Saylor's MicroStrategy (MSTR) strategy. After completing a $1.3 billion convertible bond issuance in May this year, the company invested approximately $500 million to purchase 4,710 Bitcoins for the first time.