GameStop plunges 12% after proposing new $1.75B debt offering
GameStop’s latest convertible senior note proposal pushed the stock price down further just days after Q1 revenue missed expectations.
GameStop (GME) shares fell 11.7% in after-hours trading after announcing a $1.75 billion private convertible senior note offering — extending its debt financing strategy that could fund additional Bitcoin purchases.
GME had already slid 5.34% to $28.55 during normal trading hours on Wednesday after GameStop reported a first-quarter revenue fall of 17% in after-hours the day before.
The US video game and consumer electronics retailer didn’t explicitly state that the proceeds would be used to fund additional Bitcoin purchases, but said it intends to make investments in a manner consistent with GameStop’s investment policy in addition to potential acquisitions.
