GameStop Plans $1.3 Billion Convertible Debt for Bitcoin Acquisition

GameStop plans to raise $1.3 billion through a private offering of senior convertible notes to fund its acquisition of Bitcoin and other corporate purposes. The notes will carry a 0% interest rate and are set to mature on April 1, 2030, unless converted or redeemed earlier. This move follows the company's decision to include Bitcoin in its treasury strategy, reflecting a broader trend of corporate adoption of cryptocurrencies. Despite a 12% surge in stock prices after announcing the Bitcoin initiative, GameStop's stock dropped over 8% after the offering was disclosed, raising concerns about potential share dilution. Analysts note that while GameStop's strategy mirrors that of other firms like MicroStrategy, Bitcoin has struggled to surpass the $100,000 mark despite positive corporate sentiment. The announcement could influence both GameStop's stock and the broader cryptocurrency market, reminiscent of the company's impact during the meme stock phenomenon in 2021.