Rikki Jørgensen
6 days ago

GameStop stock surge propels Roaring Kitty towards billionaire status

Shutterstock
Shutterstock

Keith Gill, famously known as "Roaring Kitty" and "DeepFuckingValue," is on the brink of becoming a billionaire, thanks to his strategic investments in GameStop stock. As GameStop shares continue to climb, Gill's holdings have surged to nearly $1 billion.

Gill's involvement with GameStop stock first drew widespread attention during the 2021 short squeeze, which saw the stock's value skyrocket.

On June 2, Gill disclosed that he had resumed trading GameStop, this time with an investment of $180 million. This investment comprised $115.7 million in GameStop shares and $65.7 million in call options.

The news sent ripples through the market, leading to a significant uptick in GameStop's stock price.

The impact of Gill's announcement was immediate. Within 20 minutes of his post on Reddit, GameStop's stock price jumped by 19% in Robinhood's overnight markets. Since the announcement, the stock has risen by 118%, closing at $46.55 per share and even reaching $67.50 in after-hours trading.

Market analysts at The Kobeissi Letter have noted that if GameStop opens at its current after-hours price, Gill's position could be worth approximately $1 billion.

This dramatic increase has also significantly boosted GameStop's market capitalization, adding $9.5 billion in just 12 hours and positioning the company among the 400-largest public companies in the United States.

However, Gill's recent trades have not gone without scrutiny.

On June 3, Citron Research, a known short-seller of GameStop, accused Gill of market manipulation. The firm suggested that Gill could not have executed such a large trade on his own, raising suspicions about potential collusion. Citron's criticism centered on the feasibility of Gill's financial capacity to back such a significant position, insinuating that he might be working with undisclosed partners.

In response to these allegations, the Massachusetts securities regulator has opened an investigation into Gill's activities. According to former Chicago Securities and Exchange Commission official Lisa Braganca, the investigation will likely explore whether Gill engaged in market manipulation.

This includes examining his communications on platforms like Reddit and X (formerly Twitter), to determine if there was any illegal conduct or collaboration with others to influence the market.

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