GameStop rally sends Roaring Kitty shares to $1B
Stock trader Keith Gill, known for shorting GameStop in 2021, is on his way to becoming a billionaire as GME shares soar.
Gill, who goes by the internet nicknames “Roaring Kitty” and “DeepFuckingValue,” revealed that GameStop stock started trading again on June 2, with $180 million to play for.
The trader posted a $115.7 million position in GameStop shares and $65.7 million in call options on his Reddit account.
The revelation of the trader's other position on GameStop once again rocked the stock market, leading to a sharp increase in GameStop's stock price. Robinhood overnight markets 20 minutes after the post, while GameStop jumped 19%, closing on shares in 2024 so far in 2024.
GameStop's stock currently sits at $46.55, a 118% gain after Gill shared his position.
Roaring Kitty is about to become a billionaire.
Global capital markets analysts believe Gill is “poised to become a billionaire” as the game's stop-loss rose to $67.50 a share in afternoon trading on Kobeisi's letter. According to stock analysts, if opened at current levels, Gill's position would be worth around $1 billion.
The analysts also noted that the stock closed 110% higher than on June 6 and added $9.5 billion in market capitalization in the last 12 hours. This puts the company at a value of $20 billion, making it one of the 400 largest public companies in the United States.
Related: E-Trade Mules Launch Meme Stock Trader Roaring Kitty: WSJ
Gill faces market manipulation probe.
On June 3, prominent GameStop short seller Citron Research criticized Gill's move. The company accused Gill of manipulating the market on XPost and saying the trader was working with someone else. He wrote:
“We believe someone is backing Gill – there's no way he ran a business of this size alone. His reported finances do not support this business. Investors see this roaring Icarus.
On June 4, Massachusetts' securities regulator reportedly opened an investigation into Gill's activities. In a CNBC interview, Lisa Braganca, a former Chicago Securities and Exchange Commission official, said the investigation will likely examine whether Gill was “manipulating the market.”
She explained that the supervisors will determine whether Gill can work with other people or if he is involved in illegal activities. Braganca explained that the regulator could look at Gill's communications, such as his texts or emails, and social media platforms such as Reddit or X.
Braganca added: “They are concerned that this is an attempt to control the market and make money through illegal disclosures.”
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