GameStop (GME) shares are returning to normal levels today following an initial rally on the announcement of fundraising plans to buy Bitcoin (BTC).
Yesterday, GameStop announced a proposed private offering of $1.3 billion in convertible senior notes with plans to use the funds to purchase the crypto king.
“GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with GameStop’s Investment Policy.”
GME rallied 14% yesterday, following the news of the company’s board approving the BTC treasury strategy, which was outlined in a U.S. Securities and Exchange Commission (SEC) filing on Tuesday.
“The Board approved the addition of Bitcoin as a treasury reserve asset, alongside US dollar-denominated stablecoins, to diversify the Company’s investment portfolio… a portion of our cash or future debt and equity issuances may be invested in Bitcoin.
We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire.”
Today, GME has fallen back to earth, retreating to roughly the same value as five days ago.
GME is worth $24.21 at time of writing, down 14.6% on the day. Over the same period, BTC is up 0.7%, currently going for $87,310.
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