Monday saw volatile trading of GameStop shares after the company said that it could sell up to $1 billion worth of additive shares. This follows a historic Reddit-fueled short squeeze.

GameStop traded at 4% when last seen with a $182 price per share. Earlier today, the shares had fallen much lower by 14% after the company made the announcement of a stock offering of about 3.5 million shares.

GameStop said that it would use the revenues from the shares to speed up its e-commerce operations, for general operations and to improve its balance sheet. It is capitalizing on its recent Reddit rally, following which stocks soared above $400 a share during a massive short squeeze. In the beginning of the year, before the Reddit frenzy, its shares had traded below $20 per share.

Activist investor and board member Ryan Cohen, who is a co-founder of Chewy, is leading a technology and e-commerce transition of this brick and mortar retailer. Former Amazon and Google executive Jenna Owens is now the chief operating office of GameStop.

On Monday, in another release, the retailer said that it saw a total global increase in sales of about 11% during the first nine weeks of the fiscal year 2021 when companies with its sales in the same period in 2020. The total global sales increased by 18% year-over-year, for the five-week period that ended on April 2.

Two weeks ago, the fourth quarter results released were worse than expected. However, the company said that its e-commerce sales had soared by 175% in the last quarter. These sales a counted for more than 33% of its sale in the period.

Joseph Feldman who is an analyst at the Telsey Advisory Group said that GameStop has not as yet shown financial success in an industry that is surging to digital, in a note on Monday. He also said that they continued to believe that the current valuation exceeded their “rosy fundamentals expectations and projected multi-year benefits from the strategic transformation.”