GameStop (GME) has set the price for its previously announced private offering of $1.3 billion in convertible senior notes, marking a significant step towards potentially adding bitcoin (BTC) to its financial assets.
The zero-coupon notes, maturing in 2030, will initially allow conversion at a rate of 33.4970 shares per $1,000 invested, leading to an initial conversion price of roughly $29.85 per share.
At the close of Thursday’s trading session in New York, GameStop (GME) was priced at $22.09, making the bitcoin-linked notes represent about a 35% premium compared to this recent closing price.
Following the announcement of its BTC bond initiative, GME’s stock took a hit – declining over 22% during Thursday’s trading – as investor reactions have been wary, even with CEO Ryan Cohen framing this strategic pivot towards bitcoin as a way to utilize the company’s significant cash reserves.
If the offering proves successful and achieves its targets, GME would ascend to become the fourth largest corporate holder of BTC, trailing only behind the mining company Riot Platforms (RIOT) and preceding Tesla (TSLA).