GameStop is raising money — perhaps for more bitcoin — and the market doesn’t like it
GameStop is down 17% premarket after announcing yesterday after market close that it plans to raise more debt.
The struggling video game retailer, which earlier this week posted weak sales, plans to offer $1.75 billon in interest-free convertible senior notes due in 2032. GameStop says it plans to use the money for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy,” which could include buying more bitcoin.
Earlier this year, GameStop did a similar raise with a $1.3 billion private offering of convertible senior notes that it used in part to buy more than $500 million in bitcoin. As Sherwood News’ Luke Kawa recently wrote, the strategy of pivoting to bitcoin might be wearing off.
The struggling video game retailer, which earlier this week posted weak sales, plans to offer $1.75 billon in interest-free convertible senior notes due in 2032. GameStop says it plans to use the money for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy,” which could include buying more bitcoin.
Earlier this year, GameStop did a similar raise with a $1.3 billion private offering of convertible senior notes that it used in part to buy more than $500 million in bitcoin. As Sherwood News’ Luke Kawa recently wrote, the strategy of pivoting to bitcoin might be wearing off.
