Within just a day of announcing its entry into the ranks of businesses adopting a bitcoin (BTC) treasury strategy, GameStop (GME), under the leadership of CEO Ryan Cohen, is now also stepping into the realm of issuing convertible debt to secure funding for BTC purchases.
The firm will offer $1.3 billion in convertible senior notes, which will mature in five years. Additionally, the underwriter has a greenshoe option for up to $200 million more.
“GameStop plans to utilize the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin in a manner that aligns with GameStop’s Investment Policy,” the announcement stated.
By taking this step, GameStop joins notable companies such as those led by Michael Saylor (MSTR), Semler Scientific (SMLR), Marathon Digital (MARA), and Riot Platforms (RIOT), all of whom are raising convertible debt to facilitate bitcoin investments.
Following an 11.7% increase during regular trading on Wednesday, GME shares experienced a 7% decline in after-hours trading. Meanwhile, bitcoin appears to be recovering from earlier lows, climbing back to $87,000 after briefly dipping to $86,000 just moments prior.