The Zhitong Finance App learned that since Game Station (GME.US) announced that it would receive nearly 1 billion US dollars in capital from a stock sale plan, the company most favored by retail investors once rose sharply by 25% after the market. As of press time, the increase had narrowed to 13.1%.

The video game retailer used a round of deals earlier this month to sell 45 million shares and raise around $933 million, according to a statement on Friday. The stock jumped 25% to $23.80 after the market, but is still far below the peak of nearly $65 on May 14.

The stock follows the same trend as AMC Cinemas (AMC.US). Earlier this month, Keith Gill posted on X, once again sparking a “meme stock” craze. He became famous by winning over GameStation deals on Reddit in 2021. At the time, both stocks surged in price without any fundamental updates. AMC rose simultaneously with GameStop at the end of the session, jumping 8.06% to $5.23. As of press time, AMC rose 1.03% to $4.89.

Game Station announced an “on-market transaction plan” earlier this month. This move enables banks to issue shares for sale, and the proceeds will be added to the company's cash reserves. The company's cash reserves are about 1.1 billion US dollars before financing. The company intends to use this capital for general corporate purposes, which may include acquisitions and investment activities.

The video game retailer's basic business is struggling, and most players choose to download new games rather than go to physical stores. As part of a stock sale strategy, the company revealed its operations over the past few months. Sales fell short of expectations due to a focus on cutting costs.