TechFlow, June 25 — According to CoinDesk, GameStop (GME) disclosed to the SEC on Tuesday that it has raised an additional $450 million by exercising the "green shoe" option, bringing the total funding from its mid-June convertible bond issuance to $2.7 billion. The zero-coupon convertible senior notes, maturing in 2032, are convertible into common stock at $28.91 per share, representing a 32.5% premium over the initial offering price.
GameStop stated that the proceeds will be used for general corporate purposes and investments, including purchasing bitcoin as a reserve asset. The company first acquired 4,710 bitcoins in May, worth approximately $500 million, joining the ranks of public companies like MicroStrategy adopting cryptocurrency reserve strategies.
The so-called "green shoe" option grants underwriters the right to purchase additional shares from the issuing company at the offering price within a certain period (typically 30 days) after the securities are issued, originally stemming from the Green Shoe Company in 1919. This mechanism is primarily used to stabilize the price of newly issued securities, meet excess demand, and provide additional financing for the issuer.
