Online game retailer GameStop (GME) raised an extra $450 million by means of a follow-on sale of zero-coupon convertible senior notes, the corporate disclosed in an Tuesday submitting to the SEC.
This got here only a week after the retailer’s preliminary $2.25 billion personal placement, bringing the whole fundraising to $2.7 billion from the providing, the corporate stated.
The extra notes had been offered below a 13-day possibility granted to the preliminary purchaser, who exercised the so-called “greenshoe” possibility in full. The notes, due in 2032, can convert into GameStop Class A typical shares at a worth of $28.91, representing a 32.5% premium over the inventory’s volume-weighted common as of June 12, the time of the preliminary providing.
The capital shall be used for basic company functions and “making investments in a fashion in line with GameStop’s Funding Coverage,” which incorporates buying bitcoin
as a treasury reserve asset.
GameStop is without doubt one of the rising cadre of publicly traded corporations to pursue a crypto treasury technique. They elevate capital by promoting shares and issuing debt so as to add cryptocurrencies comparable to BTC to their stability sheets, mirroring the playbook of Michael Saylor’s Technique (MSTR). The corporate made its preliminary acquisitions of bitcoin in Could, shopping for 4,710 cash for about $500 million following a $1.3 billion convertible observe providing.
GME shares are flat in Wednesday morning U.S. buying and selling.
