GameStop Corp ( GME ) shares are trading lower in Wednesday’s after-hours session after the company announced a proposed private offering.

What Happened: After market close on Wednesday, GameStop ( GME ) said it intends to offer $1.3 billion worth of its 0.00% convertible senior notes due 2030 in a private offering to institutional investors. The company plans to grant the initial purchasers 13 days to purchase up to an additional $200 million.

Taking a page out of Strategy’s playbook, GameStop ( GME ) said it intends to use the net proceeds from the offering to buy Bitcoin (CRYPTO: BTC).

The news comes a day after GameStop ( GME ) reported fourth-quarter earnings and announced the approval of Bitcoin as a treasury reserve asset. The company noted in a filing that it planned to use a portion of its cash or future debt and equity issuances to invest in Bitcoin.

"We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire," the company said in a filing.

GameStop ( GME ) previously made a push into the crypto space with the launch of wallets that let users manage crypto and NFTs, but pivoted in 2023 due to “regulatory uncertainty.”

Investors have been speculating about a potential Bitcoin strategy from GameStop ( GME ) ever since CEO Ryan Cohen posted a picture with Strategy’s Michael Saylor on X last month.

Wedbush's Michael Pachter called GameStop ( GME ) “a rich man’s MicroStrategy" in an interview Wednesday morning ahead of the offering.

"If GameStop ( GME ) were to buy all Bitcoin with their $4.6 billion in cash and trade at two times, the stock would drop five bucks," the analyst said.

GME Price Action: GameStop ( GME ) shares closed Wednesday up 11.65% on the back of earnings and the Bitcoin investment announcement. The stock was down 7.26% after hours, trading at $26.30 at the time of publication, according to Benzinga Pro.

Read Next:

These 4 S&P 500 Sectors Could Outperform The Market In April, If History Has A Say