{"id":50910,"date":"2021-04-13T02:37:29","date_gmt":"2021-04-13T02:37:29","guid":{"rendered":"https:\/\/timestampmag.com\/?p=50910"},"modified":"2021-04-12T16:51:43","modified_gmt":"2021-04-12T16:51:43","slug":"14-drop-in-gme-with-gamestops-announcement-of-selling-up-to-3-5m-shares","status":"publish","type":"post","link":"https:\/\/timestampmag.com\/2021\/04\/13\/14-drop-in-gme-with-gamestops-announcement-of-selling-up-to-3-5m-shares\/","title":{"rendered":"14% drop in GME with GameStop\u2019s Announcement of Selling up to 3.5M shares"},"content":{"rendered":"<ul>\n<li><strong>Many believed that GameStop was heading towards the cleaners awaiting a similar fate to that of Blockbuster Movies company.<\/strong><\/li>\n<li><strong>Things changed rapidly for GameStop when a rally was formed by investors online in the \u2018WallStretBets\u2019 Reddit Community, creating a huge spike in GME share prices.<\/strong><\/li>\n<li><strong>The retailer who is experiencing double-digit sales growth for the 9th consecutive week compared to last year is expecting to raise $1Billion in proceeds through the proposed sale.<\/strong><\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.gamestop.com\/\" target=\"_blank\" rel=\"noopener\">GameStop<\/a>, which had seen a steep short stock squeeze of about 8,000 percent over six months, is now seeing a fall in its shares as the company looks to cash in on the surge. It recently announced its plans on selling up to 3.5 million of its stock shares, after the <a href=\"https:\/\/www.reddit.com\/\" target=\"_blank\" rel=\"noopener\">Reddit<\/a>-fuelled rally that garnered worldwide attention and debate.<\/p>\n<p>GameStop Corporation is an American video gaming retailer. The company declared that it has filed a prospectus supplement with the United States Securities and Exchange Commission and plans on offering and selling up to 3.5 million GME shares through an at-the-market (ATM) equity offering program.<\/p>\n<p>Following the announcement, GameStop\u2019s shares fell by more than 14% to $164, as per data from MarketWatch. Its stock value had surged above $370 in late January 2021. GME was trading at less than $20 at the start of the year.<\/p>\n<h2>The Viral Reddit Rally<\/h2>\n<p>The <a href=\"https:\/\/www.reddit.com\/r\/wallstreetbets\/\" target=\"_blank\" rel=\"noopener\">WallStreetBets (WSB) community<\/a>, with more than 5 million followers, is a Reddit forum. It noticed that GameStop \u2013 then a brick-and-mortar retailer of video games hit hard by the pandemic \u2013 was facing acute hedge funds shorting. The consensus on Wall Street was that GameStop was headed on the lines of Blockbuster \u2013 a mostly defunct company.<\/p>\n<p>This prompted several amateur WSB investors to buy shares of GameStop, which they believed were severely undervalued. The volume of shares spiked in a few days and GameStop witnessed an unprecedented stock price surge. From a single share value of $4, it\u2019s shares skyrocketed to $370 by January 2021 following the Reddit rally.<\/p>\n<h2>Looking Forward to Transformation and Strengthening<\/h2>\n<p><a href=\"https:\/\/www.gamestop.com\/\" target=\"_blank\" rel=\"noopener\">GameStop<\/a> has emphasized that the net proceeds from their offering sales shall \u201cfurther accelerate its transformation as well as for general corporate purposes and further strengthening its balance sheet.\u201d They professed that the common stock will be offered through American multinational independent investment bank Jefferies Group, which will also function as the sales agent.<\/p>\n<p>\u201cSales may be made at market prices prevailing at the time of a sale or prices related to prevailing market prices,\u201d the firm noted while stating that all sales of common stock will comply with Rule 415(a)(4) of the Securities Act. The offering would be strictly capped at 3.5 million shares under the ATM offering and the aggregate gross proceeds would be limited to $1,000,000,000. \u201cThe timing and amount of any sales will be determined by a variety of factors considered by the Company,\u201d they added.<\/p>\n<h2>A Call for Transparency and Fairness<\/h2>\n<p>Galaxy Digital CEO Mike Novogratz commented that GameStop\u2019s squeeze stands for the power of crypto, particularly the <a href=\"https:\/\/timestampmag.com\/2020\/05\/06\/an-introduction-to-defi\/\" target=\"_blank\" rel=\"noopener\">DeFi<\/a> industry. \u201cIt\u2019s a revolution that started with people not trusting central authority. It\u2019s a call for transparency and fairness,\u201d Novogratz was heard saying.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-50912\" src=\"https:\/\/timestampmag.com\/wp-content\/uploads\/2021\/04\/city.png\" alt=\"\" width=\"1197\" height=\"785\" srcset=\"https:\/\/timestampmag.com\/wp-content\/uploads\/2021\/04\/city.png 1197w, https:\/\/timestampmag.com\/wp-content\/uploads\/2021\/04\/city-300x197.png 300w, https:\/\/timestampmag.com\/wp-content\/uploads\/2021\/04\/city-1024x672.png 1024w, https:\/\/timestampmag.com\/wp-content\/uploads\/2021\/04\/city-768x504.png 768w\" sizes=\"(max-width: 1197px) 100vw, 1197px\" \/><\/p>\n<p>The company is currently in the middle of a major e-commerce transition led by board member Ryan Cohen, who was also Chewy\u2019s co-founder. GameStop recently hired Jenna Owens, the former Amazon, and Google executive as its newest COO.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many believed that GameStop was heading towards the cleaners awaiting a similar fate to that of Blockbuster Movies company. Things changed rapidly for GameStop when a rally was formed by investors online in the \u2018WallStretBets\u2019 Reddit Community, creating a huge spike in GME share prices. The retailer who is experiencing double-digit sales growth for the [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":50911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[514,513,519,516,515,518,517],"_links":{"self":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/50910"}],"collection":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/comments?post=50910"}],"version-history":[{"count":2,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/50910\/revisions"}],"predecessor-version":[{"id":50915,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/posts\/50910\/revisions\/50915"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/media\/50911"}],"wp:attachment":[{"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/media?parent=50910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/categories?post=50910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timestampmag.com\/wp-json\/wp\/v2\/tags?post=50910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}