GameStop has raised its convertible senior notes offering to $2.25 billion from an initial $1.75 billion, the video game retailer announced in a press release Thursday.
The new bonds, which bear no interest, carry a conversion price of about $28.91 per share—a 32.5% premium over the company’s average stock price Thursday afternoon. This price is subject to change under certain conditions, according to the release.
This marks the second convertible bond raise by GameStop following a $1.5 billion offering in April. Despite this, the company’s shares dropped 24% over the week, closing at $22.14 on Friday, down from around $28.36 when GameStop first disclosed plans to buy Bitcoin in late March.
Last month, GameStop acquired 4,710 Bitcoin. However, CEO Ryan Cohen recently stated the company will not announce future Bitcoin purchases or follow other firms’ strategies in accumulating the leading cryptocurrency.
The funds from the bond offering are intended for general corporate purposes, including investments aligning with GameStop’s Investment Policy and potential acquisitions.
Beyond gaming, GameStop has sought to diversify its business. It shut down its NFT marketplace early last year and is now focusing on trading cards, which accounted for 29% of first-quarter sales. Cohen described trading cards as a natural extension of GameStop’s heritage, covering sports, Pokémon, and collectibles.