GameStop Completes $2.14 Billion Share Offering After Keith Gill’s Meme Stock Livestream – What’s Next for GameStop?

Bengaluru, India – GameStop, the video game retailer synonymous with meme stock trading, recently announced the completion of an “at-the-market” equity offering, raising approximately $2.14 billion in gross proceeds. This news comes just days after influential meme stock figure Keith Gill’s return to livestreaming after a three-year absence.

Following the announcement, GameStop’s shares initially surged over 5% before experiencing volatile trading, ultimately dipping by 1.6%. During Gill’s livestream, which garnered more than 600,000 viewers, he humorously discussed memes and sprinkled disclaimers among insights on the company. Despite this, the stock closed nearly 40% lower by the end of the session.

The company revealed that it successfully sold the maximum allocation of 75 million registered shares as part of the offering. Each GameStop share, on average, was sold for around $28.50, with the stock closing at $30.49 after the day’s trading.

GameStop plans to utilize the raised funds for general corporate purposes, including possible acquisitions and investments. In an unexpected move, the company released its first-quarter results early, reporting a 28.7% decline in revenues to $881.8 million alongside the announcement of the stock sale.

CEO Ryan Cohen’s stake in GameStop decreased to 8.6% as of June 10 from 10.5% on May 22, as per regulatory filings. Furthermore, in May, the company raised $933.4 million through the sale of 45 million shares, with the plan disclosed amidst a surge in retail buying influenced by Gill’s social media presence.

Keith Gill, also known as “Roaring Kitty” on YouTube, played a pivotal role in fueling the 2021 meme stocks phenomenon by sharing bullish sentiment on GameStop. His enthusiastic endorsements on Reddit and YouTube attracted significant retail investment to the struggling retailer, reviving interest in its stock.