GameStop Corp shares fell 12 on Monday after the video game retailer said it may sell up to 1 billion worth of stock as it takes advantage of a dizzying rally in its shares this year on the back of a Redditdriven retail trading frenzy.

The company said it would sell up to 3.5 million shares and use the proceeds to speed up the shift in its business model to ecommerce in an overhaul being led by top shareholder and board member Ryan Cohen.

At Thursdays closing price of 191.45, the atthemarket sale could fetch GameStop up to 670 million. The company, however, is not obligated to sell shares at that value since atthemarket programs allow companies to sell stock over a prolonged period of time.

GameStops stock has gained more than 900 so far this year, giving the company a valuation of as much as 34 billion at one point as retail traders bet against Wall Street hedge funds that had shorted its shares.

Movie theater operator AMC and airline operator American Airlines, which also benefited from the Redditfueled trading frenzy in January, were able to sell stock but GameStop was unable to do so because of regulatory restrictions.

GameStop warned investors that the purchase of shares in its offering may result in a significant loss if the price of its stock declines.

The new atthemarket offering prospectus filed with the U.S. Securities and Exchange Commission replaces one from December, in which GameStop had registered to sell 100 million worth of stock. The company said it…