** Shares of GameStop GME.N drop 8.3% to $26 in extended trading as video game retailer seeks capital raise to buy bitcoin BTC=

** GME shares on Weds finished up 11.7% at $28.36 after co said it would invest in the world's largest cryptocurrency

** After the bell, co says offering privately $1.3 bln 0% 5-yr convertible bonds

** Co has ~$12.7 bln market cap, per LSEG data

** Through Weds, stock off 9.5% YTD but up >80% over the past 12 months

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))