GameStop’s Potential Move into Bitcoin Purchases
In a significant development for the gaming and cryptocurrency sectors, GameStop (GME) may soon start purchasing Bitcoin (BTC). This possibility comes on the heels of the company’s recent closure of a substantial offering, raising $1.3 billion through five-year convertible notes. Notably, the $200 million greenshoe option was fully exercised by the initial purchaser, bringing the total amount raised to a remarkable $1.5 billion.
According to a filing made after the close of U.S. trading on Monday, the net proceeds to GameStop, after accounting for fees, amounted to approximately $1.48 billion. This influx of capital could pave the way for GameStop to diversify its investments, with the company, led by CEO Ryan Cohen, outlining plans to integrate Bitcoin into its financial strategy.
In conjunction with its fourth-quarter earnings report released last week, GameStop announced that its board had unanimously approved an update to the company’s investment policy. This update specifically allows the inclusion of Bitcoin in the company’s balance sheet, reflecting a forward-thinking approach to its asset management.
Following these developments, GameStop’s stock saw a modest increase, rising by 1.35% during the regular trading session on Monday. The positive momentum continued into after-hours trading, where shares gained an additional 0.8%. Meanwhile, Bitcoin has maintained a stable position, currently trading at around $84,900, indicating a resilient presence in the market over the past 24 hours.
