Gamestop (GME) shares decreased by 11.7 % in trading after working hours after announcing a $ 1.75 billion-dollar transferred notable notes-which extends the debt financing strategy that can fund additional purchases from Bitcoin.
GME has already slipped by 5.34 % to $ 28.55 during regular trading hours on Wednesday after Gamestop recorded a decrease in revenue in the first quarter by 17 % in the hours after the day.
Gamestop recently bought $ 513 million in Bitcoin
The American video game and the retail consumer electronics were not explicitly state Revenue will be used to finance additional Bitcoin purchases, but she said it intends to make investments in a way that is consistent with Gamestop’s investment policy as well as possible acquisitions.
Part of the latest $ 1.5 billion increased by transferred notes to buy 4,710 Bitcoin (BTC) – $ 513 million at the time – on May 28.
The transformable upper notes were an increasingly common financial tool for public companies seeking to enhance Bitcoin bonds.
It is currently in Gamestop 4,710 Bitco Stash in the position of 13 largest bitcoin holders, According to To bitcointreasuries.net data.
The special offer of $ 1.75 billion holds a 0 % interest rate, with a transferred upper notes on June 15, 2032.
The offer includes an option for the first buyers to purchase additional $ 250 million.
Related to: Blockchain Group to raise $ 340 million for Bitcoin
The notes are converted to either cash, GME or a mixture of the two, depending on the Gamestop decision.
Gamestop fell early on the results of the first quarter
The last offer comes as Gamestop recorded a profit of $ 44.8 million in the first quarter, reflecting a loss of $ 32.3 million from the first quarter of 2024.
However, revenues decreased by 17 % to 732.4 million dollars, the loss of industry expectations and caused a significant decrease in hours after June 10.
GME shares have decreased since the first bitcoin purchased
According to To Google Finance, GME shares decreased by 18.5 % since Gamestop confirmed the first Bitcoin purchase on May 28.
When the collaboration decreased in 11.7 % after working hours, Gamestop has now wiped all the gains it has achieved since March 25, when it announced for the first time the plans to invest in Bitcoin.
GME shares movement contrasts with most public companies that have witnessed the high prices of their shares after announcing bitcoin purchases or plans to do so.
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