GameStop (GME) plans to sell up to $1b of its stock to capitalize on the massive gains it made earlier this year when Reddit users congregated to essentially tick-off Wall Street’s hedge fund short-sellers. The video game retailer plans to use the proceeds to fund its e-commerce overhaul.
As you may remember, GameStop’s shares jumped over 900% since January after the amateur retail investors joined forces to boost its otherwise pretty irrelevant stock. Now, the company wants to cash in those dollars — the new sale will encompass up to 3.5 million shares worth no more than $1b. Investors weren’t too happy with the news, though, as its stock dropped by nearly 14% on Monday.