Bitcoin Treasury Firm GameStop Boosts Convertible Bond Offering to $2.25 Billion
Summary
GameStop increased its offering of convertible senior notes to $2.25 billion from $1.75 billion. Shares fell 24% over the week, closing at $22.14, after the announcement of more convertible bonds. The new bonds will have no interest and a conversion price of approximately $28.91 per share, representing a 32.5% premium over the average stock price. GameStop's recent Bitcoin purchase of 4,710 units remains uncertain for future acquisitions, as CEO Ryan Cohen stated the company will not disclose future purchases. Proceeds from the offering will be used for general corporate purposes and potential acquisitions. GameStop is focusing on trading cards, which accounted for 29% of first-quarter sales, as a natural extension of its business.