The GameStop Stock Experiences a Sharp Increase Following the Recent Revival of the Meme Rally. The Background is the Company's Announcement of Completing a Capital Raise Through the Sale of 45 Million Shares.
In May, the news was surprising that Keith Gill, known as Roaring Kitty, had become active again after three years of silence. The investor had kicked off the meme rally of GameStop stock in early 2021 with an euphoric analysis on the Reddit forum WallStreetBets. Following his return, the GameStop stock momentarily soared up to 271 percent to $64.83 before it fell back.
On Friday, the GameStop stock rose by 13.10 percent to 21.49 US dollars in after-hours trading on the NYSE. Due to the Memorial Day holiday, it will not be until Tuesday that it becomes clear how the price will continue to develop in official trading.
GameStop announced before the weekend that the previously announced capital increase of approximately 933.4 million US dollars was completed through the sale of 45 million shares. The company had applied for this measure on May 17 with the US Securities and Exchange Commission (SEC) as an "At-the-Market" program.
The net proceeds are to be used for general corporate purposes, including acquisitions and investments, as GameStop announced in a press release after the market close on Friday. The capital increase is part of the company's strategy to increase its financial flexibility and secure future growth.
