Video game retailer GameStop has announced a large $1.75 billion convertible senior notes issuing, the latest financial move by the company as it shifts its focus to investing in cryptocurrency. The news arrives a day after the distressed retailer announced its initial Bitcoin purchase, marking a strategic change in how

• GameStop announced a $1.75 billion convertible senior notes offering with zero interest, maturing in 2032.

• The convertible notes offering has sparked speculation that GameStop will use proceeds for additional Bitcoin purchases.

Video game retailer GameStop has announced a large $1.75 billion convertible senior notes issuing, the latest financial move by the company as it shifts its focus to investing in cryptocurrency. The news arrives a day after the distressed retailer announced its initial Bitcoin purchase, marking a strategic change in how the meme stock favorite intends to conduct its corporate treasury.

GameStop has also given the initial buyers the option to buy an extra $250 million in notes within 13 days of the initial sale. These zero-interest convertible securities will mature in the middle of 2032. It will give GameStop long-term financing flexibility to operate in the difficult market conditions in the traditional gaming sector.

Revolution in Corporate Treasury Gathers Pace

The decision of GameStop to enter Bitcoin treasury management is a part of a larger corporate trend. This trend has become extremely popular among publicly traded businesses. In March, the retailer amended its investment policy to allow Bitcoin to be held as treasury reserve. Later in late May, the company bought 4,710 BTC.

As per the official announcement of the company, the debt offering will be used to fund general corporate purposes, such as investments in line with the revised treasury policy and strategic acquisitions. This two-in-one strategy will enable GameStop to retain operational flexibility as it develops its cryptocurrency positions.

This capital raise comes on the back of a poor first quarter of the year, where its revenue fell 17% year-over-year to $732.4 million. The firm is still experiencing the headwinds of the ongoing digitalisation in the industry. This has diminished the need to buy physical games and operate in the traditional retail business.

The response in the market has been quite adverse, as GameStop stock declined. The stock went down over 5% during the regular trading hours and a further 10% in the after-hours trading session.

GameStop has become a part of 114 publicly traded companies to follow a Bitcoin treasury strategy, inspired by MicroStrategy. Other companies are also raising funds to buy Bitcoins, such as Trump Media is raising $12 billion, and Metaplanet is aiming to raise $5.4 billion to invest in cryptocurrencies.

This wave of corporate adoption implies the increasing recognition of Bitcoin as a valid treasury asset. Now, more traditional businesses are attracted towards BTC in need of inflation hedges and portfolio diversification.

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