GameStop saw a notable surge on Monday, fueled by speculation that Keith Gill, a prominent figure in the 2021 short squeeze saga, might be heavily invested in the video game retailer. Gill, known by his online monikers “Roaring Kitty” on YouTube and X, and “DeepF——Value” on Reddit, re-emerged on social media, posting what appeared to be a screenshot of his portfolio. This screenshot suggested he held a substantial amount of GameStop common shares and call options.
BREAKING: GameStop stock, $GME, soars over 80% after “Roaring Kitty” announces that he has bought $65 million of call options and $116 million of stock.
“Roaring Kitty” is currently up over $300 million on this $GME position.
The stock has now added $5 BILLION of market cap… pic.twitter.com/F23Yw4SBDl
— The Kobeissi Letter (@KobeissiLetter) June 3, 2024
The snapshot, shared on Reddit’s r/SuperStonk forum, indicated that Gill possesses 5 million GameStop shares valued at $115.7 million based on Friday’s closing price. Additionally, the account displayed 120,000 call options for GameStop with a $20 strike price, set to expire on June 21st, bought at approximately $5.68 each. These shares closed at $23.14 on Friday.
The resurgence in Gill’s activity spurred significant market reaction. On Monday, GameStop shares soared around 30%, trading at approximately $30.26 per share. The NYSE temporarily halted trading due to volatility, after the stock had surged over 70% at the opening bell.
Despite the fervor, it’s important to note that the post has not been independently verified. Interestingly, Gill did not share this update on the WallStreetBets subreddit, where he originally chronicled his trades during the height of the GameStop craze over three years ago. However, he used the same username as before, lending some credibility to the post.
🚨BREAKING: Roaring Kitty’s Return Ignites GameStop Frenzy Amid Robinhood Trading Halt!🚨
In a stunning turn of events, Roaring Kitty, also known as Keith Gill, the man who sparked the 2021 meme stock craze, has made a dramatic return.
After a three-year hiatus, his enigmatic… pic.twitter.com/r1uCpXSGvz
— OGDOGEKING.eth (@ogdogekingeth) June 3, 2024
In conjunction with his portfolio snapshot, Gill posted a cryptic image of a reverse card from the game “Uno” on X, adding to the speculation and intrigue surrounding his activities.
This recent development follows Gill’s initial return to social media three weeks prior, which triggered a dramatic rally in GameStop’s stock. A simple post of a man leaning forward in a chair was enough to double the stock’s value in May, showcasing the substantial influence Gill still wields over retail traders.
GameStop capitalized on the May rally by raising over $900 million through a stock sale, bolstering its financial position. This move was seen as a strategic step to leverage the heightened investor interest and stabilize its financial footing amid ongoing business challenges.
Roaring Kitty just posted a GameStop YOLO update pic.twitter.com/ikNAyoah31
— wallstreetbets (@wallstreetbets) June 3, 2024
Keith Gill, a former marketer for Massachusetts Mutual Life Insurance, played a pivotal role in the 2021 GameStop saga. Through his YouTube videos and Reddit posts, he galvanized a group of retail traders to take on short-selling hedge funds, leading to a historic short squeeze. The trading frenzy at its peak was so intense that brokerages, including Robinhood, had to restrict trading due to margin requirements, resulting in a series of congressional hearings focused on broker practices and the gamification of retail trading.
Despite the current excitement, GameStop continues to face significant challenges as it transitions from traditional brick-and-mortar sales to online gaming. Investors are closely watching CEO Ryan Cohen, hoping he can steer the company towards a successful reinvention. The recent market activity reflects ongoing investor interest and speculation about GameStop’s future, driven largely by figures like Gill, who have become emblematic of the retail trading revolution.
As the meme stock phenomenon resurfaces, it remains to be seen whether GameStop can convert this renewed interest into long-term stability and growth, or if it will continue to be characterized by volatility and speculative trading.
Major Points:
- GameStop shares surged about 30% on Monday, driven by speculation that Keith Gill, also known as “Roaring Kitty” and “DeepF——Value,” holds a significant position in the company.
- Gill posted a screenshot on Reddit’s r/SuperStonk forum suggesting he holds 5 million GameStop shares worth $115.7 million and 120,000 call options with a $20 strike price.
- The post, which hasn’t been independently verified, led to a buying frenzy and a temporary trading halt due to volatility.
- Gill’s recent social media activity, including a cryptic “Uno” reverse card image, has reignited interest in meme stocks.
- GameStop recently raised over $900 million in a stock sale, aiming to bolster its financial position amid a challenging transition to online gaming.
Fallon Jacobson – Reprinted with permission of Whatfinger News
