GameStop files to sell another 20 million shares

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It's becoming increasingly clear, at least in the most astute financial circles, that Roaring Kitty — the progenitor of sorts of the retail-driven meme mania — has a mission that involves luring its devoted army of retail investors to periodically drive up GameStop's stock price, allowing the company to then use its artificially inflated share price to raise additional cash.

GameStop Pump by Roaring Kitty

In early June, Keith Gill, better known on Reddit as Roaring Kitty, disclosed that he owned 5 million physical shares of GameStop and retained control of an additional 12 million shares through his 120,000 call options on the stock with a strike price of $20 and expiration on June 21, causing bursts of higher momentum in GameStop shares.

However, having failed to spark a sustained rally in GameStop shares, Roaring Kitty announced On June 13th he had sold all my call options and that he converted the proceeds into additional shares. As of the latest available update, Roaring Kitty owned 9.001 million GameStop shares, up from his original 5 million shares.

While Roaring Kitty's antics didn't do much good for average retail traders, his actions in May and June allowed GameStop to raise additional funds by placing 20 million shares on the market.

Well, three months later, as Roaring Kitty continued to give retailers hope by posting cryptic memes and using his brief affair with Chewy Inc. To distract, GameStop is releasing another version today placement of up to 20 million shares on the market.

At the time of writing, GameStop shares were down about 10 percent in after-hours trading. What is the definition of insanity?

GameStop Q2 2024 Earnings

Meanwhile, GameStop announced The company today released its second-quarter 2024 earnings report, reporting net sales of $798 million, compared to consensus estimates. 895.67 million dollars.

On the other hand, the company managed to record a positive net income of $14.8 million for the quarter, compared to the net loss of $2.8 million that GameStop recorded in the same quarter last year.

GameStop files to sell another 20 million shares

Additionally, thanks to Roaring Kitty's antics, GameStop's cash and cash equivalents totaled $4.204 billion at the end of June. The latest offering on the market shelf is expected to play a major role in further enhancing the company's cash-based liquidity.

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