%GameStop (NYSE: $GME) is moving forward with a private offering of $1.30 billion U.S. in convertible senior notes, the proceeds of which it plans to use to start buying %Bitcoin (CRYPTO: $BTC).
Shares of the videogame retailer fell 6% in extended trading as investors digest its %Cryptocurrency plans and equity raise.
The company said in releasing its latest financial results that its board of directors has approved the acquisition of Bitcoin.
For its quarter ended Feb. 1, GameStop reported net sales of $1.28 billion U.S., down 28% from a year earlier and below the $1.48 billion U.S. analysts had expected from the company.
However, the company’s earnings per share (EPS) of $0.29 U.S. beat the $0.08 U.S. expected on Wall Street.
The plan to buy Bitcoin, which has been approved by GameStop’s board of directors, takes a page from the playbook of %Strategy (NASDAQ: $MSTR), which is the world’s largest corporate holder of the cryptocurrency.
GameStop’s push into crypto is the latest effort by the company to revive its struggling brick-and-mortar business.
In recent years, GameStop has cut costs and streamlined its operations to shore-up its finances.
The company’s retail store business has been pressured by a move to buy video games online and via digital downloads.
Bitcoin, the world’s largest cryptocurrency, has been on a roller coaster ride. After hitting an all-time high of $109,000 U.S. in January, its price has fallen to $87,000 U.S.
The stock of GameStop has declined 8% so far this year to trade at $28.36 U.S. per share.
