Meme stock champion Keith Gill, also known as “Roaring Kitty,” recently revealed his ownership of over 9 million shares of GameStop’s common stock, along with more than $6 million in cash. This marks an increase from his initial disclosure on June 2, when he held 5 million shares and 120,000 call options against GameStop. Call options provide the holder with the right to buy shares at a specified price by a certain expiration date. It is unclear how Gill acquired his additional shares, but there was a surge in trading volume of GameStop call options with a strike price of $20 and an expiration date of June 21, which led to speculation that Gill may have been offloading some of his position.
Many observers had questioned whether Gill would hold onto his calls options until expiration, given the significant capital required to exercise them. Exercising all of his calls would have necessitated $240 million to purchase the resulting 12 million shares at $20 each, far more than what Gill had shown in his public E-Trade account. Despite this uncertainty, the total value of Gill’s portfolio, including cash, had surpassed $268 million as of Thursday evening, up from $210 million on June 2. GameStop shares experienced a more than 14% surge on Thursday, likely bolstered by the increased interest in the company’s recent equity sale.
GameStop’s annual shareholder meeting on Thursday was marred by computer issues, as servers crashed amidst overwhelming interest in the stream. The video game retailer had recently raised over $2 billion in an equity sale, seizing an opportunity presented by the renewed meme stock rally. GameStop intends to utilize the funds for general corporate purposes, possibly including acquisitions and investments. Despite the disruptions at the shareholder meeting, the company’s stock price continued to rise, reflecting continued investor enthusiasm and renewed momentum in the meme stock market.
Gill’s increased holding in GameStop underscores his steadfast belief in the company’s potential and the meme stock movement as a whole. The ongoing volatility in GameStop shares, coupled with speculation surrounding Gill’s options strategy, has kept investors and observers closely following the developments. The heightened interest in GameStop, fueled by both individual retail investors like Gill and institutional players, has contributed to the stock’s resurgence in recent months. As the meme stock phenomenon continues to captivate the market, the actions of key players like Gill will likely remain under scrutiny, shaping the narrative around the future of companies like GameStop and the broader implications for the trading landscape.
The evolving story of Keith Gill, GameStop, and the meme stock movement serves as a microcosm of the current financial landscape, where traditional norms are challenged, and retail investors have newfound power in shaping market dynamics. Gill’s bold moves and unwavering commitment to GameStop have made him a central figure in the ongoing saga of meme stocks, drawing attention from both supporters and skeptics. As the saga continues to unfold, with unforeseeable twists and turns, the legacy of figures like Gill will be closely intertwined with the broader narrative of retail investor influence, short squeezes, and the future of meme stocks in the ever-changing world of finance.
