GameStop Raises $2.14 Billion in Equity Offering Amid Meme Stock Revival

Videogame retailer GameStop announced on Tuesday that it had completed an “at-the-market” equity offering of its shares, raising approximately $2.14 billion in gross proceeds.

This announcement follows the first livestream by meme stock influencer Keith Gill in three years, known online as “Roaring Kitty.”

Influence of Meme Stock Figures:

Gill, a key figure behind the extraordinary rally in GameStop’s stock in 2021, held a livestream on Friday that attracted over 600,000 viewers.

During the stream, Gill joked about memes and included various disclaimers while discussing GameStop. Despite the high engagement, the stock closed the session nearly 40% down.

Financial Details of the Offering:

GameStop sold the maximum allowed 75 million shares under the equity offering program.

According to Reuters’ calculations, the average sale price of each share was approximately $28.50. Following Tuesday’s trading, GameStop’s shares closed at $30.49.

GameStop stated that the proceeds from the equity offering would be used for general corporate purposes. These may include acquisitions and investments to bolster the company’s operations and market position.

Impact on Key Stakeholders:

CEO Ryan Cohen, who held an 8.6% stake in GameStop as of June 10, saw his stake diluted from 10.5% as of May 22 due to the share sale. Notably, this dilution resulted from GameStop selling shares and not Cohen divesting his holdings.

Historical Context and Influence:

Earlier in May, GameStop raised $933.4 million by selling 45 million shares, disclosed amid a surge in retail buying driven by Gill’s return to social media.

Gill’s bullish commentary on GameStop had played a significant role in the 2021 meme stock frenzy, which saw an influx of retail investors rallying behind the beleaguered brick-and-mortar retailer through Reddit posts and YouTube streams.