• GameStop dips toe into Bitcoin, issuing $1.3B in notes to fund crypto move and operations.
• GameStop stock price jumps 11% as chatter among retail investors heats up around Bitcoin treasury plans.

GameStop is officially stepping into the world of Bitcoin [BTC], announcing a significant $1.3 billion offering of convertible senior notes to help finance their foray into BTC.

Hot on the heels of confirming Bitcoin as part of their financial playbook, the company also revealed plans to raise even more capital through these convertible notes.

These notes, set to mature in five years, come with a 0% interest rate, but could potentially expand to $1.5 billion if the underwriters decide to grab some extra.

For those wondering about the bigger picture, this move, given a thumbs-up by the entire board, mirrors a growing trend among public companies to include Bitcoin in their financial reserves – a strategy famously pioneered by MicroStrategy.

GameStop’s Crypto Game Plan

This decision wasn’t out of the blue; it followed increasing calls from investors, including Strive Asset Management CEO Matt Cole, who pushed GameStop to put its considerable cash reserves to work by investing in Bitcoin.

According to the official press release, 

“GameStop anticipates using the net proceeds from this offering for general business operations, which includes scooping up some bitcoin in line with the company’s Investment Policy.”

This bold step clearly indicates GameStop’s growing belief in cryptocurrency as both a protective measure and a way to boost shareholder value.

Mark your calendars: GameStop’s newly announced convertible notes are scheduled to mature on April 1st, 2030, unless they get redeemed or converted sooner.

These notes are unsecured and won’t accrue regular interest, keeping their base value intact throughout their lifespan.

While GameStop has confirmed that the funds raised will go towards general corporate activities and acquiring Bitcoin, they’re keeping mum on exactly how much will be allocated for those BTC buys.

Crypto and Meme Coin Markets React

Investors cheered the news, sending GME stock soaring by 11% in response.

The excitement spilled over into the crypto market too, with meme coins like Dogecoin [DOGE], Shiba Inu [SHIB], Pepe coin [PEPE], and Floki [FLOKI] all enjoying gains for several days straight.

Last checked, GME was trading at $28.36, up 11.65% in the last 24 hours, while Bitcoin saw a slight dip of 0.87%, currently at $87,478.60.

Skeptics Still in the Mix

However, not everyone’s on board with the hype. Wedbush analyst Michael Pachter voiced his concerns to Yahoo Finance, saying,

“The company’s strategy, which seems to change every few months, is now to buy cryptocurrency and imitate MicroStrategy. If GameStop used all their $4.6 billion cash to buy Bitcoin and the market valued them at twice their Bitcoin holdings, the stock would actually drop by five bucks.”

But, it’s not all negativity. QCP analysts offered a different perspective in a note to investors, suggesting, 

“While corporate Bitcoin adoption isn’t brand new, GameStop’s meme stock status adds a layer of speculative excitement, potentially reigniting the retail frenzy we saw back in 2021. As that playbook showed us, coordinated retail buying power can definitely challenge the positions of big institutional players.”