GameStop raises over $2B in stock sale during Roaring Kitty craze

GameStop raised more than $2 billion after selling 75 million shares, the video game retailer said Tuesday.

The sales of the shares stemmed from an at-the-market equity offering program that GameStop announced earlier in the month.

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“GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments,” the retailer said.

It marked the second at-the-market equity offering that GameStop has conducted in the past month, following a smaller one involving 45 million shares in May. That grossed $933.4 million, the retailer said in a Securities and Exchange Commission (SEC) filing.

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Proceeds from the May stock sale were also intended for “general corporate purposes.”

Both stock sales came as GameStop received heightened attention and experienced stock price fluctuations due to meme stock retail trader Keith Gill becoming active again on his “Roaring Kitty” social media accounts.

Keith Gill, a Reddit user credited with inspiring GameStop’s rally, during a YouTube livestream arranged on a laptop at the New York Stock Exchange (NYSE) in New York, on June 7, 2024. (Michael Nagle/Bloomberg via Getty Images / Getty Images)

Gill indicated on his June 7 YouTube livestream that he still liked GameStop and owned a large amount of the company’s stock. He also spoke highly of its management team, particularly CEO Ryan Cohen.

“I’m not promising anything, but over the long term here, I think he seems like the type of guy,” Gill said of Cohen transforming and turning around GameStop. “He seems like he has those characteristics in the way he approaches this, seems like he might be able to do this but, again, that’s not a guarantee.”

In the first quarter, GameStop posted net sales of $881.8 million, marking a year-over-year decline of 28.7%. Its quarterly net loss, meanwhile, improved to $32.3 million.

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A GameStop store in New York, on March 4, 2024. (Shelby Knowles/Bloomberg via Getty Images / Getty Images)

The company has said it is “following a strategic plan to fully leverage its unique position and brand recognition in gaming through a new phase of transformation” to become profitable again.