[hamstercat]

They issued for over $1B worth of shares in 2021: https://news.gamestop.com/news-releases/news-release-details...

According to Google their market cap is currently 7.78B but I don't know what it was when they issued them so it's hard to say how big of a proportion it was at the time. The stock price did go up when they did it too, against all odds.

There are issues with issuing shares as described in the link you shared, I don't want to minimize that. And you're right about diluting existing shareholders.

My point was more that many companies do it and the money the company raises by doing so gets added on the balance sheet, which can be used to fund profitable ventures, or to burn. The main differentiator is whether they are raising money because they believe they can make more money out of it (ie Shopify) or because they have to in order to avoid bankruptcy (ie Hertz).

[rcarr]

Ahhh I had no idea about GME doing this in 2021. I also didn't know Shopify and Hertz had both performed share dilutions. I thought they were pretty rare but they must have happen more than I realised. Thank you for informing me.