GameStop raises an additional $450 million, possibly to increase its Bitcoin holdings

According to ChainCatcher news and reported by CoinDesk, video game retailer GameStop (GME) submitted documents to the U.S. Securities and Exchange Commission (SEC) on Tuesday showing that the company has raised $450 million through a subsequent issuance of zero-coupon convertible preferred notes.

This new issuance comes just a week after its initial $2.25 billion private placement, bringing the total amount raised in this round of financing to $2.7 billion. The company stated that this issuance was executed based on a 13-day option granted to the initial purchasers, who fully exercised the so-called "green shoe option." These notes, maturing in 2032, can be converted into GameStop Class A common stock at a price of $28.91 per share, representing a 32.5% premium over the volume-weighted average share price at the time of the initial issuance on June 12.

The funds raised will be used for general corporate purposes and "investments that align with GameStop's investment policy," including allocating Bitcoin (BTC) as a treasury reserve asset. GameStop is one of the publicly traded companies increasingly adopting a cryptocurrency asset reserve strategy, similar to Michael Saylor's Strategy (MSTR), by raising funds through stock sales and bond issuances to allocate to crypto assets like BTC. After completing a $1.3 billion convertible bond issuance in May, the company first spent approximately $500 million to acquire 4,710 Bitcoins.