GameStop Eyes Bitcoin Acquisition with $1.3 Billion Convertible Note Offering

GameStop (NYSE: GME) announced on March 26 a private offering of $1.3 billion in convertible senior notes due in 2030, potentially using the proceeds to acquire Bitcoin. The offering, subject to market conditions, targets qualified institutional buyers. GameStop also granted purchasers a 13-day option to buy an additional $200 million in notes, potentially raising the total to $1.5 billion. The notes, maturing on April 1, 2030, are unsecured and won't bear regular interest. GameStop may settle conversions in cash, shares, or a combination. The company expects to use net proceeds for general corporate purposes, including Bitcoin acquisition, aligning with its updated investment policy that now permits investments in Bitcoin and U.S. dollar-denominated stablecoins. This move mirrors MicroStrategy's strategy of using convertible notes to fund Bitcoin purchases.