GameStop completes $1.5 billion convertible bond issuance "preparing to buy the dip Bitcoin", GME stock price rebounds

GameStop, a former Wall Street meme stock and video game retailer, edged up today after announcing that it had completed a $1.5 billion convertible bond offering to fund its plans to buy bitcoin. (Synopsis: GameStop announces a 7% rise in "buying bitcoin as a company reserve", Michael Saylor: Welcome to the BTC revolutionary army) (Background added: GameStop( Game Station ) Considering investing in Bitcoin and other cryptocurrencies can become the next microstrategy? GameStop (GME), a leading U.S. gaming retailer, announced today (2) that it has successfully completed its five-year, $1.3 billion convertible bond offering. More notably, due to the overwhelming market response, initial purchasers fully exercised an additional $200 million in "green shoe option" (Greenshoe Option), bringing the total size of the offering to $1.5 billion. According to filings filed after Monday's close of US time, the company's actual net income after deducting related expenses was about $1.48 billion. A convertible bond is a hybrid financial instrument that allows bondholders to convert a bond into common stock of a company under certain conditions. For GameStop, the issuance of conversion bonds provides a relatively low-cost way to raise capital, while also potentially diluting equity in the future. The successful over-fundraising shows that the market is interested in investors' future development of GameStop, although the stock price fell sharply the day before, but from the perspective of financing, it exceeded expectations. Investment Strategy Shift: Bitcoin Considerations Coinciding with the release of fourth-quarter earnings last week, GameStop, led by Chairman and CEO Ryan Cohen, announced that its board of directors has unanimously approved an update to the company's investment policy to allow bitcoin (Bitcoin, BTC) to be added to its balance sheet. This means that GameStop is likely to use some of the funds raised to start buying Bitcoin, and may even have started, but it should be noted that GameStop has not promised to use all the money to buy Bitcoin. Traditionally, retail companies' balance sheets have consisted primarily of cash, inventory, accounts receivable, and fixed assets. Including more volatile cryptocurrencies could be a bold attempt for the retail industry, possibly considering two aspects of the market: Considering that Bitcoin is considered by some investors to be a digital gold with the potential to fight inflation and serve as a store of value; Second, this move may be to follow the example of public companies such as MicroStrategy that pioneered Bitcoin as an inventory asset, and seek the possibility of increasing the value of the company by holding Bitcoin; In addition, GameStop, as a representative of the "meme stocks" (Meme Stock), has many cryptocurrency advocates in its vast retail investor community, which may further solidify its image and appeal among specific investment groups. Since taking over GameStop, Ryan Cohen has been instrumental in transforming the company from a traditional brick-and-mortar retailer to a digital, technology-centric enterprise. While the path to transformation is challenging, the inclusion of Bitcoin as an investment option demonstrates its willingness to explore non-traditional ways to enhance the company's financial position and future potential. The market response is stable, the future impact remains to be seen After the completion of the fundraising, the market reaction was relatively stable, GameStop shares rose 1.35% in the regular trading session on Monday, and edged up 0.8% in after-hours trading, and the 22% plunge after the news may have scared bearish investors out of the market, while subsequent investors' interpretation of the news tends to be neutral, there is no panic selling or fanatical pursuit, which shows that the market may be happy to see the company seeking diversified asset allocation, Concerns about the high volatility of the bitcoin price have been reflected a few days ago. While GameStop's potential purchases may not be large relative to Bitcoin's total market capitalization, a high-profile company's public announcement that it is considering adding Bitcoin to its balance sheet is indicative in itself and may encourage other businesses to follow suit, thus positively impacting Bitcoin's long-term demand. Whether and when GameStop will actually start buying bitcoin and the scale of the purchase is still unknown, the company has only updated its investment policy, given flexibility to operate, and has not made specific commitments, so the actual $1.5 billion injection into the cryptocurrency market remains to be seen, perhaps related to changes in the regulatory environment, fluctuations in the price of bitcoin and GameStop's own operating conditions, and GameStop's future exchanges with bitcoin gangs (such as microstrategies). But for the market, it is undoubtedly an increase in the case of traditional companies willing to hold bitcoin. Related Stories Want to buy bitcoin stocks? GameStop CEO posted a photo with Micheal Saylor, GME soared 9.7% in a single day GameStop short legend: How did a KOL lead retail investors and beat Wall Street bears to make $40 million? The History of the Demise of GameStop NFTs: Is the Entry of Traditional Companies into Cryptocurrencies a Profitable Business? "GameStop Completes $1.5 Billion Conversion Bond Issuance 'Ready to Bottom Bitcoin', GME Stock Price Rebounds" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".