- GameStop is issuing $1.3B in convertible senior notes to fund Bitcoin purchases.
- GameStop’s bonds have a 0% interest rate, mature in 2030, and offer a 35-40% conversion premium for stock conversion.
- GameStop’s BTC purchase could boost buying pressure, potentially sparking a Bitcoin rally.
Just a day after revealing plans to add Bitcoin (BTC) to its balance sheet, GameStop (GME) is taking things a step further. The company, led by CEO Ryan Cohen, is raising $1.3 billion by issuing convertible senior notes, aiming to use the funds for Bitcoin purchases.
The five-year bonds, set to mature in 2030, come with a 0% coupon, as per press release. Investors will have the option to convert their notes into GameStop shares if the stock price reaches a predetermined level, with a conversion premium set between 35% and 40%. An additional $200 million may also be raised through an underwriter option.
By adopting this Bitcoin strategy, GameStop joins companies like MicroStrategy (MSTR), MARA Holdings (MARA), and Riot Platforms (RIOT), all of which have issued convertible debt to buy Bitcoin.
However, GameStop’s board has unanimously approved Bitcoin as a treasury reserve asset, without setting a maximum limit on how much BTC it can hold. According to its SEC filing, the company also retains the right to sell Bitcoin when necessary.
Market Reactions: GameStop Stock and Crypto Rally
Following the Bitcoin announcement, GME stock surged 11.65%. The crypto market also responded positively, with Bitcoin holding strong at $88K and meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), PEPE, and FLOKI trading in the green for the second consecutive day.
GameStop has a history of influencing meme coins, dating back to the 2021 “meme stock” frenzy. During the GameStop short squeeze, DOGE and SHIB saw explosive gains. More recently, the meme coin market got another boost when Keith Gill, known as Roaring Kitty—the key figure behind the GameStop short squeeze—returned online.
However, historically, major corporate Bitcoin purchases have contributed to bullish momentum, as seen with MicroStrategy. If GameStop follows through on significant BTC acquisitions, it could add buying pressure to the market, potentially sparking a new rally.
For now, GameStop’s decision to integrate Bitcoin into its financial strategy marks another major step in corporate BTC adoption—one that could influence both stock and crypto markets in the coming months.
Highlighted Crypto News Today
ChatGPT Forecasts XRP Price Impact from Potential $10 Billion ETF Adoption
