Today, GameStop (GME) shares are stabilizing after a surge in response to plans for fundraising to acquire Bitcoin (BTC).
Yesterday, GameStop revealed a proposal for a private offering of $1.3 billion in convertible senior notes, intending to use the proceeds to invest in the popular cryptocurrency.
“GameStop plans to utilize the funds from the offering for various corporate purposes, including the acquisition of Bitcoin in alignment with GameStop’s Investment Policy.”
GME experienced a 14% increase yesterday following the announcement of the company’s board approving the Bitcoin treasury strategy, as detailed in a filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday.
“The Board has given the green light for Bitcoin to be added to the treasury reserve assets, alongside stablecoins denominated in US dollars, to diversify the Company’s investment portfolio. A portion of our cash reserves or future debt and equity issuances may be directed towards Bitcoin. We have not set a specific limit on the amount of Bitcoin we may acquire and retain the option to sell any Bitcoin we accumulate.”
However, GME has since retraced its gains, returning to a similar valuation as five days ago.
At the time of writing, GME is priced at $24.21, down by 14.6% for the day. Meanwhile, BTC has seen a 0.7% increase, currently trading at $87,310.
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