In February of this year, rumors surfaced that a well-known video game retailer GameStop considers investing in bitcoin and other crypto assets. A month later, the rumors were confirmed. The company has officially announced that it will spend $1.3 billion on general corporate needs, including the purchase of bitcoin in accordance with the company’s new investment policy.
GameStop plans to raise these huge funds through a private placement of convertible senior notes, which have a maturity date of 2030 and can be converted into Class A shares of the company
For ordinary investors with ordinary voting rights.. A convertible bond allows the holder to convert it into a predetermined number of shares if the price of the bond rises to a certain level.
Interestingly, after this announcement, GameStop’s shares fell by about 15%, while after the announcement of plans to purchase cryptocurrencies a month ago — they rose by 20%.
GameStop will join other companies such as Strategy and Tesla, which had already included bitcoin in their investment portfolios.
Source: GameStop
