GameStop (GME) has announced a follow-on offering of $450 million in zero-coupon convertible senior notes, as disclosed in a recent filing with the U.S. Securities and Exchange Commission (SEC). This issuance follows closely on the heels of its initial $2.25 billion private placement, increasing the total capital raised in this financing round to $2.7 billion. The follow-on was activated by the full exercise of a 13-day greenshoe option granted to initial investors.
The convertible notes, set to mature in 2032, offer conversion into GameStop’s Class A common stock at a price of $28.91 per share, reflecting a 32.5% premium over the volume-weighted average price at the initial issuance date. Proceeds from this capital raise will support general corporate purposes and strategic investments aligned with GameStop’s criteria, including the allocation of Bitcoin (BTC) as a treasury reserve asset.
GameStop continues to expand its cryptocurrency reserve strategy, joining other publicly traded firms like MicroStrategy (MSTR) in leveraging capital markets to fund digital asset acquisitions. After a $1.3 billion convertible bond issuance in May, the company allocated approximately $500 million to acquire 4,710 bitcoins, underscoring its commitment to integrating cryptocurrency into its financial framework.