GameStop (GME) Falls 11% After-Hours on $1.75B Convertible Notes Offering
GameStop (GME, Financials) shares tumbled after hours Tuesday following news of a $1.75 billion convertible notes sale, as the retailer leans further into its pivot toward digital assets.
Warning! GuruFocus has detected 3 Warning Sign with GME.
The company said the offering, with an additional $250 million available to early buyers, will fund general corporate purposes. That includes investments under its new policysuch as Bitcoin acquisitions.
The move builds on GameStop's March announcement outlining plans to build a crypto treasury. The company said last month it had purchased over 4,700 bitcoin, signaling its shift away from traditional retail and toward crypto-backed reserves.
The notes are convertible into shares, or a mix of stock and cash, though exact terms were not disclosed. Investors responded negatively, with the stock down 5% during Tuesday's regular session before falling another 11% after hours.
GameStop also reported its latest financial results earlier this week, amid ongoing efforts to redefine itself beyond its core video game business.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
30 minutes ago
- Yahoo
Anthony Pompliano eyes a $750M Bitcoin SPAC merger
Anthony Pompliano eyes a $750M Bitcoin SPAC merger originally appeared on TheStreet. Crypto entrepreneur and podcast host Anthony Pompliano is reportedly in talks to launch a new Bitcoin fund that, if launched, would provide indirect access to Bitcoin to more institutional investors. The vehicle, which will be called ProCapBTC, will be headed up by Pompliano himself in the role of CEO. However, his position at the leadership of the vehicle is currently under debate, according to the Financial Times. ProCapBTC, on the other hand, intends to complete a combination with Columbus Circle Capital 1, a blank-check company that went public with support from the investment bank Cohen & Company. The proposed raise would be $500 million in equity and $250 million in convertible debt, with an announcement potentially coming next week. Columbus Circle Capital 1 is a newly incorporated blank check company formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with a high-growth technology, industrial, or consumer company. It pulled in $250 million in its May 2025 IPO underwritten by Cohen & Company Capital Markets (CCM), a unit of JVB Financial Group. NYSE-listed Cohen & Company is increasingly involved in the cryptocurrency sector, providing tax, audit, and advisory services related to digital assets, DeFi, NFTs, and cryptocurrency exchanges. Pompliano is a vocal Bitcoin proponent who already leads a fintech-focused special purpose acquisition company (SPAC), ProCap Acquisition, which went public on the Nasdaq in April. That entity raised $250 million in its initial public offering (IPO) and trades under the ticker symbol PCAPU. Shares of PCAPU advanced in June, opening at $10.60 on June 1 and rising to $11.40 by the beginning of this week, but settled at $11.42 on June 13. Anthony Pompliano eyes a $750M Bitcoin SPAC merger first appeared on TheStreet on Jun 13, 2025 This story was originally reported by TheStreet on Jun 13, 2025, where it first appeared. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
30 minutes ago
- Yahoo
MicroStrategy director cashes out $10M
MicroStrategy director cashes out $10M originally appeared on TheStreet. Strategy (Nasdaq: MSTR), earlier known as MicroStrategy, director Carl Rickertsen has cashed out all his MSTR shares for more than $10 million this month. Helmed by co-founder and executive chairman Michael Saylor, Strategy is the world's largest public corporate holder of Bitcoin. As of now, the company holds 582,000 BTC worth a whopping $61.25 billion. As per Strategy, Rickertsen has been its board member since October 2002. Protos reported about the recent transactions made by Rickertsen in a news story on June 12. As per Protos, Rickertsen bought $700,000 in MSTR shares in 2022 and sold half of it in 2023. Now, he has let go of all of his MSTR holdings. On June 2, Rickertsen acquired 26,390 shares and then sold the same day for $9,827,636. On 3 June, he sold 980 shares for $371,488.60 that he had acquired on May 13. Notably, Strategy began acquiring Bitcoin in 2020 amidst the coronavirus pandemic, and the MSTR stock has since grown more than 3,100% in value since then. The recent Iran-Israel conflict led to the stock dipping as the market opened on June 13, but it managed to recover later. At press time, MSTR was trading at $379.82. Meanwhile, Bitcoin has grown more than 1,100% in value since 2020. As per Kraken, Bitcoin was trading at $105,245.08 at press time, down 2.81% a day. TheStreet Roundtable reached out to MicroStrategy for a comment on the matter and has not received a response so far. We will update the story if and when the company responds. MicroStrategy director cashes out $10M first appeared on TheStreet on Jun 13, 2025 This story was originally reported by TheStreet on Jun 13, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Bitcoin Price Falls. Why Crypto Volatility Is a Thing of the Past.
Looking at history, Bitcoin could do well for about another year, then see a down year in 2026, Cantor Fitzgerald analyst says. Sign in to access your portfolio
