As its fitness products continue to fall short, Peloton (PTON) announced Tuesday that it will sell $1 billion worth of its Class A common stock.

The announcement comes as the fitness company looks for ways to generate cash. The shares it plans to sell represent about 7% of Peloton's $14.4 billion market value as of Monday's close.

The company further stated that it permitted the underwriters of the stock offering a 30-day option to purchase up to an added $150 million worth of shares, although it didn’t clarify how it would use the additional funds.

Goldman Sachs & Co. LLC and J.P. Morgan are standing in as representatives for the underwriters in the offering of the stock, as stated in Peloton’s press release.

Peloton flourished during the pandemic, recording their only profitable quarters as in-person gyms remained closed. As gyms are beginning to reopen, however, Peloton stock dropped 35% on Nov. 5 following the company’s reports of its declining sales and loss in its first fiscal quarter. The company also announced the same day that they would freeze hiring across all departments, effective immediately.

The fitness company’s stock has dropped almost 57% throughout the last three months, reaching its lowest closing price since June 2020, sitting at $47.49 on Monday.