GameStop, Led by Ryan Cohen, Raises $1.3 Billion in Texas to Buy Bitcoin, Shares Drop 6%

GameStop Corp., a Texas-based firm, has announced plans to raise $1.3 billion through a private offering of 0.00% convertible senior notes due 2030. The company, led by CEO Ryan Cohen, intends to use the net proceeds for general corporate purposes, which includes the acquisition of Bitcoin.

This move comes 24 hours after GameStop updated its investment policy to allow the purchase of Bitcoin as a treasury reserve asset. The offering includes an option for an additional $200 million, and the notes will not bear regular interest.

Following the announcement, GameStop's shares experienced a 6% decline during trading, with a further 7% drop in after-hours trading. The news also had an immediate impact on Bitcoin's price, which rebounded to $87,000 after dipping to as low as $86,000.

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