GameStop CEO Ryan Cohen Buys 500,000 Shares Boosting Stake to 8.4%

GameStop shares rose in after-hours trading following CEO Ryan Cohen's purchase of 500,000 shares at $21.55 each. This $10 million investment increased his stake to over 37 million shares, approximately 8.4% of the company.

The board approved a new policy allowing for Bitcoin investments, indicating a strategic shift. Despite holding $4.76 billion in cash, the announcement of a $1.3 billion convertible notes offering led to a 7% decline earlier due to concerns over potential dilution.

GameStop gained attention in early 2021 during the meme stock frenzy triggered by retail traders that caused a historic short squeeze. The company's transformation from traditional video game retailing to a tech-driven business has been marked by the hiring of Ryan Cohen as chairman and CEO.

Cohen's recent stock buy reassured retail investors, resulting in a 2.2% increase in stock price during the postmarket session.