GameStop files for $1.75 billion offering as bitcoin treasury takes hold

GameStop announced Wednesday it will offer $1.75 billion of 0.0% convertible senior notes, seemingly in a bid to raise money for potential bitcoin purchases. The company also intends to grant the initial purchasers of the notes an option to purchase up to an additional $250 million aggregate principal amount of notes.

The videogame retailer and popular memestock said it plans to use the net proceeds from the offering for general corporate purposes, including investments aligned with its updated investment policy and potential acquisitions. Back in March , the company updated its "investment policy" to add bitcoin as a treasury reserve asset.

The news follows the company's latest earnings report, which shows sagging year-over-year sales. First-quarter revenue fell 17% to $732.4 million, down from $881.8 million a year ago.

In April, GameStop (ticker: GME)  raised $1.5 billion  through convertible notes and announced the  purchase of 4,710 bitcoin — its first and only action in the cryptocurrency so far — on May 28. Led by Strategy, there are now at least 114 public companies that have adopted some form of bitcoin treasury, The Block previously reported .

After falling more than 5% in Wednesday's trading session, GameStop's stock was down another 10% in after-hours trading. Keith "Roaring Kitty" Gill and the WallStreetBets subreddit played a central role in the 2021 meme stock frenzy, which drove a surge in GameStop’s trading volume.