GameStop, the meme stock had a fantastic rally again on speculation that Keith Gill, the man who inspired 2021′s epic short squeeze, could currently have a huge position in the video game retailer. Gill, the trader widely cited as a major influence on the 2021 GME short squeeze, posted to Reddit on his “DeepFuckingValue” account on June 2 for the first time since April 2021.
GameStop shares surged over 19% in overnight trading after Keith Gill, also known as “Roaring Kitty,” posted on Reddit that he’s holding $181.4 million worth of GME stock and call options. He again reappeared on YouTube and X, on Sunday night, posting a screenshot of what could be his portfolio investment a significant amount of GameStop common shares and call options.
Roaring Kitty’s investment in GameStop
The Reddit trading crowd’s favorite trader Keith Gill holds 5 million shares of GameStop worth $115.7 million as of Friday’s closing price. This was as per the account snapshot posted on Reddit’s r/SuperStonk forum. The account also showed a position of 120,000 call options in GameStop with a strike price of $20 that expire on June 21 that were purchased for about $5.68 each.
Around the same time Sunday night, Gill posted a cryptic picture of a reverse card in the game “Uno” on X, which quickly garnered near 30,000 likes.
GameStop’s stock rally
Gill’s first return to social media three weeks ago sparked an eye-popping rally in GameStop with shares more than doubling in May alone. At the time, he simply posted a picture of a man in a chair leaning forward, but that was enough to trigger a buying frenzy among amateur traders.
GameStop took advantage of the May rally by raising more than $900 million in a stock sale.
Investor, Keith Gill
Keith Gill was a former marketer for Massachusetts Mutual Life Insurance. In 2021, through YouTube videos and Reddit posts, Gill encouraged a band of retail traders to squeeze out short selling hedge funds in GameStop.
The action got so wild at one point that brokerages including Robinhood had to restrict trading in the stock as it blew up their clearinghouse margin. The mania also led to a series of congressional hearings, featuring Gill, around brokers’ practices and gamifying retail trading.
GameStop is still struggling with a transition to online gaming away from brick-and-mortar video game purchases with investors banking on CEO Ryan Cohen to eventually reinvent the company.
GameStop’s stock update
GameStop’s shares jumped more than 19% in Robinhood’s 24-hour exchange on Sunday evening, which allows for trading of certain stocks continuously. On Friday GameStop’s shares closed at $23.14. The stock could see a big pop when premarket trading starts at 4:00 a.m. Monday.
