Online game retailer GameStop (GME) raised a further $450 million by a follow-on sale of zero-coupon convertible senior notes, the corporate disclosed in an Tuesday filing to the SEC.
This got here only a week after the retailer’s preliminary $2.25 billion personal placement, bringing the full fundraising to $2.7 billion from the providing, the corporate stated.
The extra notes have been offered below a 13-day possibility granted to the preliminary purchaser, who exercised the so-called “greenshoe” possibility in full. The notes, due in 2032, can convert into GameStop Class A standard shares at a worth of $28.91, representing a 32.5% premium over the inventory’s volume-weighted common as of June 12, the time of the preliminary providing.
The capital will likely be used for normal company functions and “making investments in a fashion in line with GameStop’s Funding Coverage,” which incorporates buying bitcoin
as a treasury reserve asset.
GameStop is without doubt one of the rising cadre of publicly traded corporations to pursue a crypto treasury technique. They elevate capital by promoting shares and issuing debt so as to add cryptocurrencies resembling BTC to their stability sheets, mirroring the playbook of Michael Saylor’s Technique (MSTR). The corporate made its initial acquisitions of bitcoin in Could, shopping for 4,710 cash for about $500 million following a $1.3 billion convertible be aware providing.
GME shares are flat in Wednesday morning U.S. buying and selling.
