GameStop (GME) stocks are falling following the announcement of a proposal to potentially purchase more Bitcoin (BTC).
Yesterday, GameStop announced a proposed private offering of $1.75 billion worth of senior convertible notes.
“GameStop Corp. (NYSE: GME) (‘GameStop’) today announced that it intends to offer, subject to market conditions and other factors, $1.75 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2032 (the ‘notes’) in a private offering (the ‘offering’) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the ‘Securities Act’).
GameStop also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $250 million aggregate principal amount of notes.”
In the announcement, GameStop says it plans to use the funds for general purposes, including potential investments “in a manner consistent with GameStop’s Investment Policy and potential acquisitions.”
According to a CNBC report, that could potentially mean purchasing more BTC.
Buying more Bitcoin is in line with recent GameStop investments. Late last month, the meme stock became a BTC Treasury by purchasing 4,710 BTC, worth $505 million at time of writing.
However, since yesterday’s announced proposal, GME has crashed 21% and is currently trading for $22.49.
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