TLDR
- Keith Gill, known as “Roaring Kitty” and “DeepFuckingValue,” revealed a nearly $175 million position in GameStop (GME) stock.
- Gill posted a screenshot on Reddit showing he owns 5 million GME shares and 120,000 call options expiring on June 21.
- GameStop shares surged up to 75% in early trading on Monday following Gill’s post.
- Gill’s return to social media in May also triggered a rally in GameStop stock, with the company raising over $900 million in a stock sale.
Keith Gill, the individual investor known as “Roaring Kitty” on X and YouTube and “DeepFuckingValue” on Reddit, has once again sparked a frenzy in GameStop (GME) stock after revealing a massive position in the video game retailer.
On Sunday night, Gill posted a screenshot on Reddit’s Superstonk subreddit, showing he had built a nearly $175 million stake in GameStop.
According to the screenshot, Gill owns 5 million GameStop shares purchased at an average price of $21.274, a position worth $115.7 million as of Friday’s closing price of $23.14.
Additionally, he holds 120,000 call options with a strike price of $20, set to expire on June 21, valued at $65.7 million.
Following Gill’s post, GameStop shares surged as much as 75% at the market open on Monday, before settling around 35% higher. The stock was temporarily halted for volatility due to the significant price movement.
This is not the first time Gill’s social media activity has impacted GameStop’s stock price. In May, his cryptic posts on X, triggered a rally that saw GameStop shares more than double in value.
— Roaring Kitty (@TheRoaringKitty) May 13, 2024
The company took advantage of the increased interest by raising over $900 million through a stock sale.
However, some experts warn investors against chasing the rally.
Steve Sosnick, Interactive Brokers chief strategist, cautioned that investors should consider whose interests are being served by the individual controlling the account posting about GameStop.
Gill, a former marketer for Massachusetts Mutual Life Insurance, gained notoriety in 2021 for his role in the GameStop short squeeze.
Through YouTube videos and Reddit posts, he encouraged retail traders to buy GameStop stock, putting pressure on short-selling hedge funds. The resulting market frenzy led to congressional hearings on broker practices and gamification of retail trading.
Despite the renewed interest in GameStop stock, the company continues to face challenges as it transitions from brick-and-mortar video game sales to online gaming. Investors are betting on CEO Ryan Cohen to reinvent the company, but the path forward remains uncertain.
The impact of Gill’s influence extends beyond GameStop. Some believe the GameStop short squeeze laid the groundwork for the surge in memecoins like Dogecoin and Shiba Inu, as retail traders turned their attention to other speculative investments.
Source: https://blockonomi.com/roaring-kitty-strikes-again-keith-gill-reveals-175-million-gamestop-position-triggering-stock-surge/