GameStop Falls 11% After $1.75B Note Offering
GameStop (GME) shares declined 11.7% in after-hours trading following the announcement of a $1.75 billion private convertible senior note offering, part of its debt financing strategy potentially aimed at funding further Bitcoin purchases. The stock had already dropped 5.34% to $28.55 during regular trading after reporting a 17% revenue decline in the first quarter. GameStop recently acquired $513 million in Bitcoin, totaling 4,710 BTC, making it the 13th largest corporate Bitcoin holder. The new offering features a 0% interest rate, with notes due on June 15, 2032, and includes an option for purchasers to buy an additional $250 million in notes. Despite a reported profit of $44.8 million in Q1, revenues fell short of expectations at $732.4 million. GME shares have decreased 18.5% since the initial Bitcoin purchase announcement on May 28, erasing gains made since March 25.
