CNN BUSINESS | GameStop cashes in on Reddit surge with big stock sale

New York (CNN Business) – GameStop shares have gone ballistic this year, surging more than 800% thanks to love from Reddit fans betting on a turnaround for the video game retailer. Now, GameStop has cashed in with a sale of more than $550 million in stock.

Shares of GameStop (GME) soared about 7% Tuesday on the news of the stock sale.

GameStop announced earlier this month that it planned to sell as much as 3.5 million shares. The company said Tuesday that it will use the proceeds from the offering to continue investing in its transformation into a more online-focused retailer, and to strengthen its balance sheet.  —read more; watch—