GameStop’s Bizarre Bitcoin Adventure: $1.3B Debt and Laughs

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What to know:

  • In a move that could only be rivaled by pulling a rabbit out of a hat, GameStop offers $1.3 billion in convertible notes at an astounding 0% coupon—almost as riveting as watching paint dry. The proceeds? Well, they aim to acquire bitcoin. Because, why not?
  • Under the watchful eye of Ryan Cohen, the mastermind of this operation, GameStop seems to have borrowed a page from the legendary Michael Saylor. Their approach is reminiscent of a talented pianist performing a delightful duet—with the funds for bitcoin acquisition functioning as the long-forgotten metronome.
  • Just a day ago, GameStop publicly declared its ambition to indulge in a little bitcoin procurement for its balance sheet. Perhaps they watched one too many episodes of a investing series?

Only 24 hours after joining the ranks of corporate titans with a rebellious stance towards a bitcoin (BTC) treasury strategy, GameStop (GME) takes the plunge into the thrilling waters of convertible debt. Yes, you heard it right—debt! A delightfully risky venture that could just be their way of stating, “We like our investments like we like our tea—unconventional.”

The swanky $1.3 billion of convertible senior notes will mature in five years—ample time for high drama and possibly even a soap opera plot twist. Let’s not forget the underwriter greenshoe, which allows for an additional $200 million. Who doesn’t want extra funds for a good old-fashioned bitcoin hoedown?

According to the ever-affable press release, “GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s Investment Policy.” I mean, what else do you do with convertible debt? Buy a small island perhaps?

By embarking on this delightful escapade, GameStop has joined the quirky club alongside the likes of Michael Saylor-led Strategy (MSTR), Semler Scientific (SMLR), Marathon Digital (MARA), and Riot Platforms (RIOT)—all of whom are ardently utelizing convertible debt for bitcoin pursuits. A true sisterhood of the traveling debt!

Ah, the stock market: where GME shares sagged 7% post-hours, right after an exuberant 11.7% rise during regular trading. Can you hear the collective sigh of investors? Meanwhile, Bitcoin, having an existential crisis, seems to be rebounding from its dreadful fall to $86,000, as if it were a daring gymnast recovering from an unfortunate slip.

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2025-03-26 23:42