GameStop plans to refinance $1.75 billion, potentially for Bitcoin investment.

Gate News bot news, GameStop Corp. plans to raise $1.75 billion through a private sale of convertible preferred notes due in 2032. The company is exploring digital asset investments, including potential Bitcoin acquisitions, according to its latest investment strategy.

These zero-coupon notes will be issued to qualified institutional buyers under Rule 144A of the Securities Act, and the initial purchasers may choose to purchase an additional $250 million within 13 days after the issuance.

These unsecured notes do not earn interest, will not appreciate in value, and will mature on June 15, 2032, unless converted, redeemed, or repurchased early.

GameStop stated that it may complete the conversion in cash, stock, or a combination of both. The conversion rate and other final terms will be determined at pricing.

Although GameStop has not disclosed specific investment targets, the company stated that the proceeds will be used for "general corporate purposes," including acquisitions and investments that align with its investment policy. This policy allows the company to allocate funds to Bitcoin and other blockchain-based assets.

Source: CryptoSlate