GameStop Corp. Cl A (NYSE: GME), an established gaming retailer that has gained popularity as a meme stock company, has announced on Wednesday, June 11, plans to raise $1.75 billion. The company announced that it intends to raise the funds through a private offering of 0 percent convertible senior notes that will expire in 2032.
GameStop announced that initial investors have an additional $250 million in notes within 13 days from the issuance date. The company announced that the proceeds from the offering will be used for general corporate purposes, including making investments in a manner consistent with its Investment Policy and potential acquisitions.
Bitcoin Acquisitions Next By GameStop?
Although the company did not explicitly state in the announcement that the funds will be used in Bitcoin purchases, speculations point to a potential imminent BTC acquisition. As Coinpedia reported, GameStop added Bitcoin to its treasury management akin to Strategy to hedge against inflation.
During the first quarter, GameStop announced the acquisition of 4,710 BTCs for $512 million. With the demand for Bitcoin rising exponentially, GameStop is likely to aggressively accumulate more BTCs in the near future through harnessing its stock market.
Market Impact
Following the announcement, GME stock dropped over 11 percent to trade about $25.23 at the time of this writing. The company, which is currently valued at about $13.49 billion, experienced heightened volatility as investors showed worry about further stock dilution.
Nevertheless, the long term impact of the deal will be positive akin to Metaplanet, if the company aggressively accumulates more BTCs.
