GameStop Corp (NYSE:GME) shares are trading lower in Wednesday’s after-hours session after the company announced a proposed private offering.
What Happened: After market close on Wednesday, GameStop said it intends to offer $1.3 billion worth of its 0.00% convertible senior notes due 2030 in a private offering to institutional investors. The company plans to grant the initial purchasers 13 days to purchase up to an additional $200 million.
Taking a page out of Strategy’s playbook, GameStop said it intends to use the net proceeds from the offering to buy Bitcoin (CRYPTO: BTC).
The news comes a day after GameStop reported fourth-quarter earnings and announced the approval of Bitcoin as a treasury reserve asset. The company noted in a filing that it planned to use a portion of its cash or future debt and equity issuances to invest in Bitcoin.
"We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire," the company said in a filing.
GameStop previously made a push into the crypto space with the launch of wallets that let users manage crypto and NFTs, but pivoted in 2023 due to “regulatory uncertainty.”
Investors have been speculating about a potential Bitcoin strategy from GameStop ever since CEO Ryan Cohen posted a picture with Strategy’s Michael Saylor on X last month.
Wedbush's Michael Pachter called GameStop “a rich man’s MicroStrategy" in an interview Wednesday morning ahead of the offering.
"If GameStop were to buy all Bitcoin with their $4.6 billion in cash and trade at two times, the stock would drop five bucks," the analyst said.
GME Price Action: GameStop shares closed Wednesday up 11.65% on the back of earnings and the Bitcoin investment announcement. The stock was down 7.26% after hours, trading at $26.30 at the time of publication, according to Benzinga Pro.
Read Next:
Photo: Shutterstock.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
