GameStop (GME) shares fell in late-Wednesday trading after the company announced plans for a big convertible notes offering expected largely to fund its Bitcoin-buying aims.
GameStop’s stock, which fell about 5% in the day’s regular session, was off another 10% in after-hours action. The company in a press release said it was offering $1.75 billion in the notes, with as much as $250 million more available to initial purchasers of the notes. The news affirmed plans announced in March.
The company in its statement said the proceeds were intended for “general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions.” The notes are convertible into either company stock or a combination of cash and stock; the conversion rate has not been determined.
GameStop, which earlier this week reported its latest financial results, is a video-game retailer seeking to become a Bitcoin treasury. The company last month said it had recently bought more than 4,700 bitcoin.
Bitcoin traded around $109,000 as of late Wednesday.
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