GameStop ticks up after $1.3 bln convertible debt deal priced

Shares of GameStop GME.N up 0.3% premarket to $22.16 after co secures capital raise to buy bitcoin BTC=

Grapevine, Texas video game retailer late Thurs announced pricing offering of $1.3 bln 0% 5-yr convertible bonds (CBs)

Initial conversion price of $29.85 represents approx 37.5% premium to stock's volume weighted avg price (VWAP) from 1:00 p.m. - 4:00 p.m ET on Thurs

GME shares tumbled 22% to close at $22.09 on Thurs, their biggest one-day drop since last Jun, as investors question co's plan to finance its bitcoin pivot

GameStop's shift mimics that of Strategy MSTR.O, which has tapped the capital markets extensively to hoard the world's largest cryptocurrency

As of Feb 3, GameStop had $4.8 bln in cash, most of which was collected from ATM ("at-the-market") sales of equity

Co has nearly $10 bln market cap, per LSEG data

Through Thurs, shares down 29.5%. They closed at $12.52 a year ago

Meanwhile, BTC currently trading down 2.5% at around the $85,100 mark. BTC down 10% in 2025 and well off record high of around $109,000 hit in mid-Jan