 
 
Following in the footsteps of Michael Saylor’s Bitcoin-buying company Strategy, video game and consumer electronics retailer GameStop announced Wednesday that it intends to issue $1.3 billion of convertible senior notes to kick off its new BTC acquisition plan.
This follows GameStop’s Q4 earnings report Tuesday where it said it would amend its investment policy to add the leading cryptocurrency as a treasury reserve asset.
Gamestop’s $1.3 Billion Fundraising Plan To Buy Bitcoin
GameStop plans to raise funds via convertible debt to build its Bitcoin stack. The company offers $1.3 billion in convertible notes without interest payments. The debt can be converted into GameStop’s class A common stock, with a conversion date and pricing set to be determined later.
These notes will only be available to institutional investors and will mature in 2030.
Gamestop said that holders of its convertible senior notes may receive a mix of cash and shares when the notes are converted at its own discretion.
 
The Texas-based video game seller said in the press release that proceeds from the sale will be used for “general corporate purposes, including the acquisition of Bitcoin.”
On March 25, GameStop said it plans to use a portion of its corporate cash or future debt to acquiredigital assets, including Bitcoin and US dollar-backed stablecoins. Per its latest earnings report, the Texas-based firm held $4.7 billion in cash — up significantly from $921 million one year prior.
“Welcome To Team Bitcoin”
With its convertible note offering, GameStop is clearly borrowing a page from Strategy’s pioneering debt-for-Bitcoin playbook. Strategy has issued billions of dollars of convertible senior notes, raising funds for Bitcoin acquisition. The company unveiled its latest offering of convertible debt in February, raising $2 billion via convertible notes maturing in March 2030.
Last month, GameStop CEO Ryan Cohen hinted at the firm’s Bitcoin pivot after posing alongside Strategy co-founder and Executive Chairman Michael Saylor in a photo he posted to the X social media platform.
“Welcome to Team Bitcoin,” Saylor wrote on X Wednesday.
Whether GameStop’s foray into BTC following Strategy’s playbook will be as successful remains to be seen.
Source: https://zycrypto.com/gamestop-plans-to-raise-1-3-billion-to-fuel-bitcoin-buying-spree-following-in-strategys-footsteps/