NEW YORK, NY – Video game retailer GameStop announced that it has successfully raised over $2 billion in its second share sale within a month, following a surge in interest led by investment influencer Keith Gill, also known as Roaring Kitty. This comes shortly after Gill’s first YouTube livestream in three years, signaling a renewed enthusiasm in the company.
GameStop’s shares have soared by nearly 23% on Tuesday alone, marking a doubling in value over the past six months. The retailer’s popularity among retail investors during the pandemic has contributed to the rise of meme stocks, a phenomenon where stocks gain traction through social media platforms like Reddit. These meme stocks, often targets of short selling by professional investors like hedge funds, have seen immense volatility in their trading patterns.
In a recent announcement to the New York Stock Exchange, GameStop revealed that it had successfully sold all 75 million shares offered to investors, raising a total of $2.137 billion. This recent share sale adds to the $3 billion the company has raised in the past month through similar offerings, reflecting the heightened interest in GameStop in the stock market.
The surge in GameStop’s stock value can be attributed to the actions of online investors rallying behind the company, a movement largely inspired by Keith Gill. This unexpected surge in GameStop’s shares has created a financial challenge for Wall Street firms that had bet against the company, leading to significant market disruptions.
Not only GameStop, but other meme stocks like cinema chain AMC and technology firm Blackberry have also experienced notable increases in their share prices during the pandemic. Despite its current trading price around $30 per share, significantly lower than its peak in June, GameStop’s recent fundraising efforts highlight a renewed confidence in the company’s potential in the market.