GameStop Shares Plunge After Plan To Raise $1.75 Bln

(RTTNews) - Shares of GameStop Corp. plunged around 11 percent in the extended trading on Wednesday and are currently trading 13 percent lower in the pre-market activity on the NYSE, after the company announced plan to raise $1.75 billion again in private offering, probably for Bitcoin purchase.

GameStop's shares had declined sharply in March after the firm announced a $1.3 billion private offering mainly with the intention to buy Bitcoin, after its Board unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset.

In its latest statement, the video game, consumer electronics, and gaming merchandise retailer said it intends to offer $1.75 billion of 0.00 percent Convertible Senior Notes due 2032 in a private offering to institutional buyers.

GameStop also intends to grant the initial purchasers of the notes an option to purchase up to an additional $250 million aggregate principal amount of notes.

The notes will mature on June 15, 2032, unless earlier converted, redeemed or repurchased. They will be paid in cash, shares, or a combination of both.

GameStop said it intends to use the net proceeds from the offering for general corporate purposes, including making investments in line with its Investment Policy and potential acquisitions.

Earlier in March, the firm had announced the pricing of $1.3 billion aggregate principal amount of 0.00 percent Convertible Senior Notes due 2030 in a private offering to institutional buyers.

Following the latest news, GameStop shares fell 11.2 percent in the after-hours trading on the NYSE on Wednesday after losing around 5.3 percent in the regular trading.

As of this writing, the shares are trading down 13.16 percent in the pre-market activity, at $24.77.