GameStop falls after $1.3 bln convertible debt unveil for bitcoin buys

GameStop's GME.N shares down 7% before the bell to $26.38 as co seeks capital raise to purchase bitcoin BTC=

Video game retailer late Weds announced it's offering privately $1.3 bln 0% 5-yr convertible bonds (CBs)

GME shares finished up nearly 12% on Weds after co reported Q4 results and said it would add the cryptocurrency as a treasury reserve asset

GameStop's pivot is similar to that of Strategy MSTR.O, which has tapped the capital markets extensively to hoard bitcoin

As of Feb 3, GameStop had $4.77 bln in cash, most of which was collected from ATM ("at-the-market") sales of equity

Co had ~$12.7 bln market cap through Weds, per LSEG data

The reference price used to determine the conversion premium of the CBs to be based on the stock's VWAP (volume weighted avg price) from 1:00 p.m. through 4:00 p.m ET on Thurs

Through Weds, stock down 9.5% YTD. A year ago, the stock closed at $13.17