GameStop shares jumped nearly 12% on March 26 after the company announced plans to purchase Bitcoin (BTC).
The company plans to finance the purchase through debt financing. After markets closed on March 26, GameStop announced a $1.3 billion convertible notes offering.
The convertible senior notes — debt that can later be converted into equity — will be used for general corporate purposes, including acquiring Bitcoin, according to a company statement.
“GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy,” it said.
The company revealed on March 25 plans to use a portion of its corporate cash or future debt to buy digital assets, including Bitcoin and US-dollar-pegged stablecoins. GameStop’s cash reserves stood at $4.77 billion on Feb. 1 compared to $921.7 million