GameStop Corp. (GME) shares rallied in after-hours trading Tuesday following news that CEO Ryan Cohen is putting even more of his own money where his mouth is.

Cohen Doubles Down

An SEC filing revealed Cohen scooped up 500,000 additional shares of GameStop at a weighted average price of about $21.12 per share. It's the kind of insider buying that tends to get investors' attention.

The purchase brings Cohen's total position to 41,582,626 shares, which includes roughly 3.7 million warrants. That translates to a 9.2% ownership stake in the video game retailer. According to the filing, he's now invested approximately $117.4 million of his personal capital to build this position over time.

The Performance Incentive

Earlier in January, GameStop's board granted Cohen a stock option award tied to some aggressive performance targets. The compensation package could be worth around $35 billion if the company somehow hits a market cap of $100 billion and generates cumulative EBITDA of $10 billion. Ambitious? Sure. But Cohen's track record at GameStop has been notable so far.

Since he joined the board, the company's market capitalization has jumped from $1.3 billion to $9.3 billion—a roughly 600% increase. GameStop has also turned its financial performance around dramatically, going from a net loss of $381.3 million in fiscal 2021 to net income of $421.8 million over the last four fiscal quarters.

GME Price Action: GameStop shares climbed 3.41% to $21.82 in Tuesday's extended trading.