GameStop shares surge after $1.3 billion convertible debt offering

GameStop Corp’s share values on Friday rose by 0.3 per cent in pre-market. The shares hit a value of $22.16 after it secured the capital to buy Bitcoin. The company, based out of Grapevine in Texas, had announced late on Thursday the pricing of its $1.3 billion Convertible Senior Notes, which is due in per the reports, the offering was aimed at institutional investors. It also includes an option for an additional $200 million purchase within 13 days of issuance. Reportedly, the video game retailer expected to raise approximately $1.28 billion after fees, which would potentially increase to $1.48 billion if the additional notes were to the report in , the notes will be maturing on April 1, 2030 and will not accrue interest. These can be converted under specific conditions until January 1, 2030, after which conversion will be open until the final trading day before , GameStop reserved the right to settle conversions in cash, stock, or a combination of Investment Sparks Market ConcernsGameStop had announced their plans to allocate part of the proceeds to purchase Bitcoin as a treasury reserve asset. This, as per the reports, aligns with its newly outlined investment strategy. It had generated enthusiasm among retail investors but also raised concerns about the company’s long-term strategy. Reportedly, their decision to pivot towards Bitcoin followed a 27 per cent rise in cryptocurrency prices since the 2024 US Elections.