GameStop tumbles on capital raise plans after meme-stocks frenzy this week

A person browses games in a GameStop in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) - Retail darling GameStop slumped 26% on Friday after the struggling videogame retailer said it would sell up to 45 million shares, taking advantage of the meme-stocks frenzy this week.

The company's shares logged their highest trading volume in three years so far this week, following a series of posts from Keith Gill's X account "Roaring Kitty", whose bullish calls on GameStop were a reason for the 2021 meme-stocks frenzy.