GameStop (GME) Falters After $1.75B Debt Offer

We recently published a list of Investors Are Dumping These 10 Stocks. GameStop Corp. (NYSE:GME) is one of the worst-performing stocks on Thursday.

GameStop fell by 24.55 percent at intraday trading on Thursday at $21.54 apiece following plans to raise $1.75 billion through a debt offering.

In a statement, GameStop Corp. (NYSE:GME) said it would offer no-interest convertible notes to qualified institutional buyers through 2032, with the option for the investors to convert them into its shares later on.

“Upon conversion, GameStop will pay or deliver, as the case may be, cash, shares of GameStop’s Class A common stock, par value $.001 per share, or a combination of cash and shares of Class A common stock, at its election,” it said.

GameStop Corp. (NYSE:GME) said it plans to use the proceeds from the offering for general corporate purposes, including potential acquisitions.

Last month, GameStop Corp. (NYSE:GME) announced the acquisition of worth $500 million of 4,710 Bitcoins as it looked to other industries to grow its business. The $500 million forms part of the company’s $1.3 billion Bitcoin purchase program, an amount it planned to raise from offering convertible senior notes.

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Disclosure: None.