GameStop has big plans, and it’s loading up on funds to make them happen.
The video game retail company raised $1.13 billion after selling an additional 5 million shares as it accelerates its online pivot.
The company used an at-the-market offering, releasing the shares directly onto the public market instead of the standard play of offering them to institutional investors.
- That’s only fitting for GameStop, which owes much of its growth – 1,150% from the start of the year to market open on Tuesday – to Reddit’s wallstreetbets forum and other retail investors.
- GameStop will use the funds to shore up its balance sheet and continue its quest to become the “Amazon of gaming.”
That charge is being led by new chairman Ryan Cohen, who sees the gaming industry growing to more than $200 billion per year in 2023.
The stock offering coincided with CEO Matt Furlong’s first day on the job and placement on the board on Monday. He is a former Amazon executive, as are the company’s chief operating, technology, and growth officers — all of whom have joined this year.
GameStop’s massive growth in stock price has come at the expense of short sellers. London-based hedge fund White Square Capital is shutting down after taking losses from shorting GameStop.