- GameStop, propelled by Reddit’s WallStreetBets in 2021, transformed from a struggling retailer to a key player with e-commerce, NFTs, and Bitcoin-focused strategies
- GameStop plans to raise $1.3B through convertible notes to fund Bitcoin purchases, aligning with institutions investing in cryptocurrency as long-term assets
- The 0.00% Convertible Senior Notes mature in 2030, allowing buyers to convert them into GameStop shares while the company pursues innovative digital ventures
GameStop, once seen as a struggling video game retailer that appeared to be heading to bankruptcy, has surprised everyone with an incredible turnaround. Back in 2021, the company became a hot topic on Reddit, where the “WallStreetBets” community rallied together to boost its stock.
What started as a fun movement to challenge big hedge funds turned into a massive phenomenon, giving GameStop a loyal fanbase and a new spotlight in the financial world.
Since then, GameStop has worked hard to change its business. The company has completely upgraded its business, stepping into e-commerce, and digital assets like NFTs, and now will even add a significant amount of Bitcoin to its treasury.
GameStop Bets Big on Bitcoin
GameStop recently shared its plan to buy Bitcoin using part of the money it will raise from selling special financial notes. While the exact amount they’ll spend on Bitcoin isn’t clear yet, experts believe it could be a big chunk of the $1.3 billion they’re aiming to raise.
Companies like Metaplanet and Strategy were among the first to invest heavily in Bitcoin, and now GameStop is joining them. This shows GameStop is following the growing trend of companies seeing Bitcoin as a smart long-term investment.
How They’ll Raise the Money
To fund its Bitcoin purchase, GameStop plans to sell $1.3 billion worth of 0.00% Convertible Senior Notes. These notes are like loans that don’t earn interest, and they’ll be offered to big institutional investors. Said notes will mature in 2030, giving the company plenty of time to use the funds strategically. Meanwhile, buyers of these notes will have the option to convert them into GameStop shares later, depending on the company’s stock price.
In addition, the company is giving buyers the choice to purchase up to $200 million more in notes if there’s enough demand. The funds raised will go toward general expenses, but Bitcoin seems to be a key part of their plan.
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