GameStop Increases Convertible Bond Offering to $2.25 Billion, Market Speculates on Potential Increase in Bitcoin Reserves

GameStop Announces Completion of Convertible Bond Offering Pricing

U.S. publicly traded company GameStop has announced the completion of the pricing of its convertible bond offering, with an expected formal closing and funding on June 17. According to the press release, the company has raised the size of the convertible bond offering from the previously announced $1.75 billion to $2.25 billion. The specific issuance terms and conversion details are as follows:

This bond does not pay interest and does not accumulate principal.

The maturity date is June 15, 2032, with conditions for early conversion or redemption.

The bond conversion price is approximately $28.91 per share, reflecting a premium of about 32.5% over the stock price on that day.

Starting from June 20, 2029, if the stock price meets specific conditions, GameStop has the right to redeem part or all of the bonds.

Bondholders may request the company to repurchase their bonds on December 15, 2028, or exercise their put option after a “significant change event.”

GameStop expects to net $2.23 billion (which could reach $2.68 billion with additional subscriptions), which will be used for general operational purposes, including asset allocation and potential acquisitions in accordance with the company’s investment policy. Although the company did not explicitly state it, speculation suggests that GameStop’s mention of “asset allocation and potential acquisitions” may refer to the acquisition of Bitcoin as a reserve asset. Earlier this April, the company raised $1.5 billion through private convertible notes, claiming that the funds would be used to purchase Bitcoin.