GameStop Stock Falls as Firm Plans $1.75 Billion Raise After Bitcoin Buy
GameStop plans to offer $1.75 billion in convertible senior notes, maturing in 2032 and not expected to bear interest. The conversion price will be determined later. Proceeds will be used for general corporate purposes, including investments and potential acquisitions, rather than specifically for Bitcoin purchases. GameStop recently acquired 4,710 Bitcoin but did not disclose the average purchase price or total expenditure. The company's stock fell 10% in after-hours trading to $25.64, a decline of 9.5% since announcing its Bitcoin intentions. GameStop's cash reserves increased to $4.7 billion from $921 million year-over-year. CEO Ryan Cohen hinted at Bitcoin investments earlier this year, collaborating with Michael Saylor, a prominent Bitcoin advocate.
