Gamestop (GME) shares fell 11.7% in trade after the time after announcing a $ 1.75 billion privately replaced Senior Note offering-expanding the debt financing strategy that could fund additional Bitcoin purchases.
GME slid 5.34% to $ 28.55 during normal trading hours Wednesday after Gamestop reported a first-quarter Falling income of 17% in the after -day time before.
Gamestop recently bought $ 513m in Bitcoin
The US video game And the retail of consumer electronics is not clear State That proceeds will be used to fund additional Bitcoin purchases, but it said it intends to make investments in a way that is consistent with the Gamestop investment policy in addition to potential acquisitions.
Part of the latest $ 1.5 billion gamestop increase by changing notes used to Buy 4,710 bitcoin (BTC) – costs $ 513 million in time – on May 28th.
Changes notes of adults are a more common financial instrument for public companies who seek to strengthen their Bitcoin Treasury.
Gamestop’s 4,710 Bitcoin stash is currently position as the 1 -13 -largest Bitcoin holdo of corporate, According to In the data of bitcointreasuries.net.
The $ 1.75 billion private offer carries 0% interest rate, including the Senior notes can be replaced Since June 15, 2032.
The offer includes an option for initial buyers to buy an additional $ 250 million in the notes.
Related: The Blockchain Group to raise $ 340m for Bitcoin Treasury
The notes will be replaced with either cash, GME stock, or a mix of both, depending on the gamestop’s decision.
Gamestop earlier in Q1 results
The latest offer will come while Gamestop reported a $ 44.8 million income In the first quarter, reversing a $ 32.3 million loss from Q1 2024.
However, revenues fell 17% to $ 732.4 million, missing industry expectations and prompting a huge collapse in hours after June 10.
GME shares have dropped since Bitcoin’s first purchase
According to In Google Finance, GME shares have dropped 18.5% since Gamestop confirmed the first Bitcoin purchase on May 28.
When factoring at 11.7% fell at that time, Gamestop has now removed all the gains made since March 25th, when it was First announced plans To invest in Bitcoin.
GME’s stock movement contrasts with most public companies who have seen increased their share prices after announcing Bitcoin purchases or plans to do so.
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