Shares of GameStop Corp (NYSE: GME ) fell 13% on Monday after the video game maker said it may sell as many as 3.5 million titles as it seeks to take advantage of rising prices. the stock market after the frenzy unleashed by financial forums on Reddit against the big hedge funds.
The share sale would net the company more than $670 million based on Thursday’s closing price of $191.45 a share.
GameStop has gained more than 900% year-to-date on the stock, trading at one point for $484.95 a share, as retail investors took bets against the big Wall Street hedge funds that had placed positions on it. short.
GameStop said it would use proceeds from share sales to expedite a shift in its business model to online operations, a plan being pushed by one of its biggest board shareholders, Ryan Cohen.
The company said it filed notice of the sale with the US Securities and Insurance Commission.
Separately, GameStop said its global sales for the period ended April 4 rose 11%.
In pre-open trading on Wall Street, shares of the company fell to $166.