GameStop has increased the size of its ‘at-the-market’ offering of convertible senior notes to $2.25 billion, up from an initially planned $1.75 billion, in a bid to bolster its financial flexibility. The notes carry no interest and are convertible into common stock at $28.91 per share, representing a 32.5% premium over the current trading price.
This significant capital raise, intended for general corporate purposes ranging from investments to potential acquisitions, coincides with strategic shifts at the company. GameStop recently disclosed the acquisition of 4,710 Bitcoin last month, though it stated it will not announce future cryptocurrency purchases publicly, signaling a measured approach to digital asset investments.
Further highlighting its strategic pivot, GameStop noted that trading card sales constituted 29% of its total first-quarter revenue, underscoring a deliberate diversification away from its traditional video game retail focus. The proceeds from the bond offering are positioned to support such strategic initiatives.
Despite securing this substantial capital influx, GameStop’s stock faced downward pressure, declining 24% over the past week to close at $22.14, reflecting persistent market volatility surrounding the company’s strategic direction and financial maneuvers.