New York. The video game retail chain GameStop announced on Monday that it plans to sell shares worth hundreds of millions of dollars to take advantage of the rise that its titles have experienced in the market thanks to the bet of retail investors coordinated through the Reddit platform.
In a statement, the US company said that it will sell up to 3.5 million shares, which at the price at which the securities closed on the last trading day could bring it around 670 million dollars.
Gamestop explained that it plans to use the proceeds from that sale to accelerate its transformation and strengthen its balance sheet.
The Texas-based video game retailer has seen a crazy year on Wall Street, with its shares going from around $ 4 in May 2020 to more than $ 400 by the end of January and into $ 190 with which they closed last Thursday.
Today, after its announcement, the titles opened with losses of around 12% in the New York Stock Exchange.
This year Gamestop became a symbol of a new movement of retail investors, who, coordinated through the internet and ignoring market trends, bet on this value and skyrocketed its price.
This forced large Wall Street funds that had bet short against GameStop to take heavy losses, in what many small investors celebrated as a defeat for the big ones in the market.
From their highs in late January, Gamestop shares then plummeted to $ 40, but later made a major rally again.
In fiscal year 2020, ended January 30, GameStop posted a net loss of $ 215 million, an improvement of 52% over the previous year and with positive results in the last quarter, although with lower sales than expected by the analysts.