GameStop recently announced that they have raised an impressive $2.137 billion after selling all 75 million shares they offered to investors. This news comes shortly after Keith Gill, also known as Roaring Kitty, made his first YouTube livestream in three years. The company’s shares have been on the rise, increasing by almost 23% on Tuesday alone and doubling in value over the last six months.
During the pandemic, GameStop gained popularity among retail investors, leading to the rise of meme stocks – stocks that become popular through platforms like Reddit. These stocks were often targeted by professional investors, resulting in significant price fluctuations. GameStop’s recent success in raising funds through share sales has been remarkable, with a total of over $3 billion raised in the last month.
Keith Gill played a significant role in inspiring online investors to support GameStop, causing a surge in the company’s shares earlier this year. A Reddit post linked to Gill claimed that he owned 5 million GameStop shares, valued at over $100 million. This unexpected turn of events put pressure on Wall Street firms that had bet against GameStop, ultimately benefiting retail investors.
In addition to GameStop, other meme stocks such as AMC and Blackberry also experienced surges in their share prices during the pandemic. While GameStop’s current share price is around $30, below its record high of $48 in June, the company’s recent fundraising success indicates a positive trend for the struggling retailer. With the support of online investors and the momentum gained from the Roaring Kitty rally, GameStop is navigating its way through volatile market conditions and securing much-needed capital for future growth.