On Wednesday, video game retailer GameStop announced that it plans to issue senior convertible note offerings worth $1.3 billion.

The company aims to use part of the proceeds from the offerings to buy Bitcoin. The offering comes 24 hours after the company announced its intention to begin adding Bitcoin to its balance sheet.

In making this move, GameStop is joining Michael Saylor-led Strategy (MSTR), Semler Scientific (SMLR), MARA Holdings (MARA), and Riot Platforms (RIOT) as firms issuing convertible debt for Bitcoin purchases.

GameStop Plans to Acquire Bitcoin

The company has announced plans to acquire Bitcoin as it explores opportunities in the cryptocurrency market. In a press release, the company revealed its intention to issue $1.3 billion in senior convertible notes with a 0% interest rate through a private offering to investors.

The press release continued, ” They expect 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. ”

However, the notes mature on April 1, 2030, unless redeemed or converted earlier. They are generally unsecured obligations, do not accrue regular interest, and maintain their principal amount throughout the holding period.

Notably, Dogecoin (DOGE) rallied over 370% in the short term during the GameStop short squeeze of 2021. Between January and May 2021, it stretched its rally by over 12,000%. Other meme coins, including Shiba Inu (SHIB), also primarily benefitted from the surge.

GME Stock Surges

Since the GameStop Bitcoin announcement, GME stock has surged by 11%, while the broader meme coin market has also recorded notable gains, with DOGE, SHIB, PEPE, and FLOKI trading in the green for a second consecutive day.

Meanwhile, this is not a first in the corporate adoption story. The symbolic weight of GME’s meme status could rekindle speculative fervor among retail participants,” QCP analysts stated in a note to investors on Wednesday. As the 2021 playbook reminds us, retail flows, if coordinated, have the power to challenge institutional positioning,” they added.

The crypto market is currently down 2%, suggesting that market participants have not yet reacted to the GameStop announcement.