GameStop shares surged higher in pre-market trading, after it was revealed that an investment group led by chairman Ryan Cohen made a purchase of around 100,000 shares in the video game retailer.
A Securities and Exchange Commission filings showed that Cohen's RC Ventures LLC now has ownership of around 9.1 million GameStop shares, which implies a 11.9% stake in the group.
GameStop posted a loss of $1.86 per share for its fiscal fourth quarter last week, which wasand managed to record negative free cash flow of $131.6 million even as revenues rose 6.2% to $2.25 billion.
The company said that it plans to develop a market for NFTs, or non-fungible tokens, related to its video game products, following a partnership with Australian blockchain startup ImmutableX last month. It plans to launch its NFT marketplace by the second quarter of the current fiscal year.