Outcome of GameStop's completion of at-the-market equity offering programs
In 2024, GameStop raised nearly $3.5 billion in cash from 3 at-the-market equity offering programs ("ATMs")
- On 3 occassions in 2024, GameStop raised cash by selling shares, raising nearly $3.5 B, at a total average price of $25 per share
- "Having a strong balance sheet especially in times of economic uncertainty is a strategic advantage."
-- Ryan Cohen, GameStop 2024 Annual Meeting (June 17, 2024) - "The purpose and quality of the use of capital is what ultimately defines the merit of any dilution."
--GameStop Director Larry Cheng (June 17, 2024) - As of the completion of these ATMs in 2024, GameStop had the highest valuation in its history, in terms of stockholders' equity
- GameStop also raised cash this way in 2021, selling shares on 2 occassions, raising nearly $1.7 B
| Date | Action | Shares issued and sold | Average price per share | Cash raised | Stockholders' equity | Total shares outstanding | Book value per share |
| As of May 4 | Q1 earnings release | -- | -- | -- | $1.3 B | 306.2 M | $4.25 |
| May 24 | ATM completion | 45 M | $20.74 | $0.9 B | $2.2 B | 351.2 M | $6.35 |
| June 11 | ATM completion | 75 M | $28.49 | $2.1 B | $4.3 B | 426.2 M | $10.25 |
| As of August 3 | Q2 earnings release | -- | -- | -- | $4.4 B | 426.5 M | $10.32 |
| September 23 | ATM completion | 20 M | $20.00 | $0.4 B | $4.8 B | 446.5 M | $10.75 |
As GameStop raised cash via ATMs in 2021 and in 2024, it has raised the stockholders' equity of the company.
As GameStop has raised cash by selling shares, while some has been used for business purposes, GameStop has held on to most of it, in the form of cash or cash equivalents, e.g. treasury bills.
GameStop has been using this large pile of cash and equivalents to generate interest income. GameStop went from paying interest expenses on existing debt, to generating significant positive interest income.
In 2021, GameStop did 2 ATMs, raising nearly $1.7 B
Stock values in 2021 are pre-split (June 2022), therefore will be 4 times larger
| Date | Action | Shares issued and sold | Average price per share | Cash raised | Stockholders' equity | Total shares outstanding | Book value per share |
| April 26 | ATM completion | 3.5 M | $157 | $0.6 B | $0.9 B | 68.5 M | $13.13 |
| As of May 1 | Q1 earnings release | -- | -- | -- | $0.9 B | 66.0 M | $13.63 |
| June 22 | ATM completion | 5.0 M | $225 | $1.1 B | $2.0 B | 71.0 M | $28.17 |
| As of July 31 | Q2 earnings release | -- | -- | -- | $1.9 B | 72.6 M | $26.17 |
"We have used, and intend to continue to use, the $1.67 billion in aggregate net proceeds generated from sales under the Q1 ATM and Q2 ATM for working capital and general corporate purposes, including repayment of indebtedness, funding our transformation and growth initiatives and product category expansion efforts, capital expenditures and the satisfaction of our tax withholding obligations upon the vesting of shares of restricted stock held by our executive officers and other employees."
