The company previously raised $1.5 billion through a similar offering and purchased over 4,000 bitcoins.

GameStop (GME) is raising another $1.75 billion by issuing convertible senior notes to fund Bitcoin purchases, according to a company press release.

The move sent its shares sliding 11% in after-hours trading on Wednesday, dragging down sentiment among retail investors.

In March, GameStop unveiled a plan to purchase Bitcoin as a treasury asset and subsequently raised $1.5 billion through a bond offering to fund those purchases.

It has acquired 4,710 bitcoins as of June 10.

The company said on Wednesday that the proceeds from the latest offering will be used at least in part to make investments in “a manner consistent with GameStop’s Investment Policy."

The offering includes an option for purchasers to buy an additional $250 million in notes within two weeks of the initial issuance. The notes carry no regular interest and will mature in June 2032 unless converted or repurchased earlier.

GameStop's effort, similar to that of Strategy (MSTR), is to link its stock to Bitcoin prices and potentially increase its assets as the token price rises.

On Stocktwits, the retail sentiment shifted to 'neutral' from 'bullish' the previous day. As of writing, GameStop was the top trending ticker on the platform.

GME sentiment and message volume as of June 11 | Source: Stocktwits

One bearish user speculated that Keith Gill, also known as "Roaring Kitty," the lead influencer of the GME-driven "meme stock" frenzies, exited his Gamestop position once CEO Ryan Cohen decided to make it a holding company and buy Bitcoin. Gill "wanted him [Cohen] to focus on the fundamentals and grow the company. Revenue from the company is still declining."

However, another user said the convertible notes plan is an interesting strategy for generating interest income without diluting shareholding.

"It’s a gamble on [the] rising price of the stock with no interest."

Earlier this week, the company published weak results for the first quarter, which showed continued weakness in its underlying video game retail business.

Revenue declined 17%, and the company announced plans to close additional stores this year.

As of their last close, GameStop shares were down 9% year-to-date.

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