GameStop hopes to cash in on stock surge by selling millions of shares

Two months after a market phenomenon took shares of GameStop to the moon, the video game retailer said Monday that it would sell up to 3.5 million of its shares with the price still vastly elevated.

Shares of the so-called meme stock fell as much as nearly 14% on the news, ending the day down 2% at $186.95. The Nasdaq rose 1.7% to $225.49, boosted by an optimistic jobs report on Good Friday. Gamestop said the shares will be sold through an "at-the-market" offering, which lets a publicly traded company raise capital over time. A bizarre stand-off between hedge funds that had heavily shorted GameStop, betting that the price of shares would fall, and smaller investors who challenged them, sent shares of the beleaguered company soaring early this year.