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GameStop’s successful share sale has strengthened the company’s balance sheet and has also fueled speculation about its future moves.
The stock price of GameStop Corp (NYSE: GME) has seen a remarkable surge of about 17%, according to pre-market data. This follows a recent stock price crash that resulted from an announcement about the company’s plan to sell off a major portion of its shares.
Given the circumstances, the price surge is already something to talk about. However, it has also raised curiosity among traders who believe that a ripple effect of the surge may be felt through other meme-based investment products.
Interestingly, just as the GME stock price is soaring, so also are some notable meme coins as seen on hourly time frame charts. This similar uptrend has triggered an industry-wide curiosity regarding what may be the correlation between GME’s 17% price rally and the upward trend being noticed in meme coins.
What Drives GameStop (GME) Price Rally?
GameStop’s pre-market rally has captured the spotlight. However, the jump is not unrelated to the events of May 24. In a Form 8-K filing with the US Securities and Exchange Commission (SEC), GameStop Corp revealed that it had successfully sold 45 million shares through an at-the-market (ATM) program. This sale, conducted via an open market agreement with Jefferies LLC, generated approximately $933.4 million in gross proceeds.
The pre-market data from NASDAQ showed GameStop’s stock price at $22.35, reflecting a 17% increase. This surge appears to reflect a growing confidence on the part of investors following the share sale. Furthermore, it also signals an ongoing interest in the company’s evolving strategy.
As earlier noted, GameStop price rally appears to be extending into the meme coin sector. While the top three meme cryptocurrencies by market cap saw negative 24-hour gains, their hourly charts show significant upward momentum in recent hours, hinting at a correlated trend.
Dogecoin (DOGE), one of the most well-known meme coins, recorded a 0.85% rise over the past hour, bringing its price to $0.1665. Similarly, Shiba Inu (SHIB) saw a 1.49% increase, reaching $0.00002528, and Pepe Coin experienced a 2.37% surge, hitting $0.00001676. These price movements suggest that the excitement surrounding GameStop’s stock may be spilling over into the meme coin market.
Other meme coins, including WIF, FLOKI, and BONK, also experienced notable gains within the same hourly timeframe. Their prices have also risen between 3-5%. This emerging trend has now garnered global attention. That is, as market participants speculate whether the momentum seen in GameStop stock might be replicated in the meme coin sector as well.
The enthusiasm around GameStop’s financial strategy is huge. Certainly, the successful share sale has strengthened the company’s balance sheet. The same sale also fuels speculation about its future moves.
As GameStop continues to repackage itself, it appears that its influence is beginning to have far-reaching implications. That is, beyond traditional stock markets and into the world of digital currencies.
