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GameStop Corp., a one-stop shop for all things gaming, has made a decision approved by its board of directors, to include Bitcoin as part of its financial reserves, the company announced this week.
The company said in the statement that it is shifting part of its corporate treasury (cash and other assets) into Bitcoin.
This comes as GameStop’s stock dropped nearly 25% on Thursday, Yahoo News reported. The decision also comes after CNBC reported GameStop was entertaining cryptocurrency investments.
The company intends to offer $1.3 billion in convertible senior notes due 2030 in a private offering to qualified institutional buyers, the company said in a news release.
Senior notes are a type of debt security, like a loan or bond, that a company issues to raise capital. Senior notes have a higher priority for repayment than other types of debt.
The notes will be unsecured obligations of GameStop and will not bear regular interest. They are set to mature on April 1, 2030, unless converted, redeemed or repurchased earlier, the release said.
GameStop plans to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin consistent with its investment policy. This marks a significant move by the company into the cryptocurrency space, the release said.
GameStop closed more than 400 stores in January, Newsweek reported. In fiscal year 2024, GameStop closed nearly 600 stores, Yahoo News reported.
Kaylee Remington is a trending news and metro reporter for and The Plain Dealer. Read her work online.
Generative AI was used to draft this story based on data provided by a GameStop news release. It was reviewed and edited by staff.
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