GameStop, the video game retailer, announced on Tuesday that it has raised $1.5 billion through a private offering of convertible notes. The company plans to use this money to invest in Bitcoin.
In a filing with the U.S. Securities and Exchange Commission, GameStop confirmed the completion of its offering of 0.00% convertible senior notes, which are due in 2030. This includes an additional $200 million that the initial purchaser opted to buy.
The news of this investment strategy initially caused GameStop’s stock to rise. However, the stock has since declined, indicating that some investors may doubt the company’s plan to incorporate Bitcoin into its treasury assets. This move is similar to a strategy adopted by another company, Strategy, which began acquiring Bitcoin in August 2020.
Nathan Cox, the chief investment officer of Two Prime Digital Assets, commented on GameStop’s decision.
