GameStop raises over $2 billion amid Roaring Kitty-led rally
GameStop, the video game retailer, has successfully concluded an "at-the-market" equity offering, raising approximately $2.14 billion in gross proceeds. This financial move comes shortly after the return of meme stock influencer Keith Gill, also known as "Roaring Kitty," to live streaming. The company confirmed that it has sold the maximum of 75 million shares registered under the program. The average sales price of each GameStop share was approximately $28.50.
GameStop's stock value fluctuates post-offering
Following the announcement of the equity offering, GameStop's stock value initially increased by over 5%. However, it later experienced a 1.6% decline in extended trading. The company plans to utilize the funds raised for general corporate purposes, including potential acquisitions and investments. Despite the recent stock sale, GameStop's CEO Ryan Cohen still holds an 8.6% stake in the company.
Gill's influence on GameStop's stock performance
Gill, a key figure in the 2021 rally of GameStop's stock, recently hosted a live stream with over 600,000 viewers. This was his first streaming session in three years. During the stream, he discussed GameStop while incorporating various disclaimers and humor about memes. This session led to a nearly 40% drop in the company's stock value. Gill's optimistic predictions about GameStop have been a significant factor in the meme stock frenzy.
