GameStop Stock Jumps after the Original Meme Stock Cashes in again with 1 Billion Share Sale

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GameStop shares climbed after the video game retailer said it sold 5 million additional shares, raising 1.13 billion in capital to accelerate growth. The original Redditfavorite meme stock jumped as much as 12.7 Tuesday after the company announced the completion of its atthemarket equity offering program that was initially disclosed on June 9. By afternoon, the daily gain was about 6. GameStop said it will use the proceeds for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet.

This is the second stock sale that GameStop has conducted since the company became a star on Reddits WallStreetBets forum, where retail traders aimed to push stock prices higher and squeeze out shortselling hedge funds. GameStop sold 3.5 million additional shares in April and raised 551 million. Investors have been encouraged by the moves and looked past the dilution of their stakes as GameStop took advantage of its monstrous rally this year more than 1,000 to speed up its ecommerce transformation.

White Square Capital, a Londonbased hedge fund, is closing its main fund and returning capital after suffering losses from betting against GameStop, the Financial Times reported Tuesday. Earlier this month, GameStop named former Amazon executive Matt Furlong as its new CEO. The company also hired several other former Amazon executives, including Jenna Owens, its new chief operating officer; Matt Francis, its first chief technology officer;…

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