{"id":19355,"date":"2025-03-27T12:02:12","date_gmt":"2025-03-27T12:02:12","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=19355"},"modified":"2025-03-27T12:02:12","modified_gmt":"2025-03-27T12:02:12","slug":"gamestop-follows-mstrs-footsteps-why-will-investors-buy-convertible-notes-with-no-interest","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=19355","title":{"rendered":"GameStop Follows MSTR&#8217;s Footsteps: Why Will Investors Buy Convertible Notes With No Interest?"},"content":{"rendered":"<div>\n<p>As <strong>GameStop Corp. <\/strong>(NYSE:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/GME#NYSE\">GME<\/a>) has announced a convertible bond offering to acquire <strong>Bitcoin <\/strong>(CRYPTO: <a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/quote\/btc\/usd\">BTC<\/a>), mirroring <strong>Strategy Inc.<\/strong>\u2018s (NASDAQ:<a class=\"ticker\" href=\"https:\/\/www.benzinga.com\/stock\/STR#NASDAQ\">STR<\/a>) plan, experts explain why investors would buy a bond with a 0% coupon.<\/p>\n<p><strong>What Happened: <\/strong>After announcing the change in its investment policy to include Bitcoin as a treasury reserve asset, <strong>Ryan Cohen<\/strong>\u2018s GameStop announced a proposed private offering of $1.3 billion of 0% convertible senior notes.<\/p>\n<p>These notes are general unsecured obligations of GameStop, which will not bear regular interest, and the principal amount of the notes will not accrete.<\/p>\n<p>Institutional investors usually invest in convertible bonds because they\u2019re a hybrid investment instrument that can be exchanged for equity in the company at a later date. The conversion feature of these notes eventually helps the debt holders to participate in the equity upside on conversion.<\/p>\n<p>But apart from that, according to <strong>Tom Lee<\/strong>, the CIO at Fundstrat Capital, these bonds also provide debt investors an <a href=\"https:\/\/www.benzinga.com\/25\/03\/44375602\/michael-saylors-mstr-provides-bitcoin-exposure-to-bondholders-with-its-novel-strategy-tom-lee-says-its-helping-bond-managers-outperform-the-market\">exposure to Bitcoin<\/a>, which he described as a \u201cnovel strategy,\u201d in the case of erstwhile MicroStrategy, led by <strong>Michael Saylor<\/strong>.<\/p>\n<p>\u201cYou might wonder why are bondholders buying these &#8230;<\/p>\n<p><a href=\"https:\/\/www.benzinga.com\/general\/market-summary\/25\/03\/44511612\/gamestop-follows-mstrs-footsteps-why-will-investors-buy-convertible-notes-with-no-interest\" alt=\"GameStop\" follows mstr footsteps: why will investors buy convertible notes with no interest>Full story available on Benzinga.com<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As GameStop Corp. (NYSE:GME) has announced a convertible bond offering to acquire Bitcoin (CRYPTO: BTC), mirroring Strategy Inc.\u2018s (NASDAQ:STR) plan, experts explain why investors would buy a bond with a 0% coupon. What Happened: After announcing the change in its investment policy to include Bitcoin as a treasury reserve asset, Ryan Cohen\u2018s GameStop announced a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-19355","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19355"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/19355\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}