On June 25, electronic game retailer GameStop (GME) filed documents with the U.S. Securities and Exchange Commission (SEC) showing that the company raised an additional $450 million through a subsequent issuance of zero-coupon convertible preferred notes.
This additional issuance comes just a week after its initial $2.25 billion private placement, bringing the total financing in this round to $2.7 billion. The company stated that this additional issuance was executed based on a 13-day option granted to the initial purchaser, who fully exercised the so-called "greenshoe option". These notes, maturing in 2032, can be converted to GameStop Class A common stock at a price of $28.91 per share, representing a 32.5% premium to the volume-weighted average stock price at the initial issuance on June 12.
The raised funds will be used for general corporate purposes and "investments in line with GameStop's investment policy", including allocating BTC as a treasury reserve asset. GameStop is one of the growing number of publicly traded companies adopting a crypto asset reserve strategy, with its approach of raising funds through stock sales and bond issuances to acquire crypto assets like BTC being similar to Michael Saylor's MicroStrategy (MSTR) strategy. After completing a $1.3 billion convertible debt issuance in May this year, the company first purchased 4,710 BTC for approximately $500 million.
