Roaring Kitty's $180 Million Position Spurs GameStop Rally

Keith Gill aka Roaring Kitty just revealed that he is holding a position in GameStop (NYSE: GME) worth $181.4 million, leading to a 19.19% price rally. 

On 2nd June 2024, Gill posted on Reddit that he bought 5 million GME shares for $115.7 million and put $65.7 million into call options. He is expecting GME to rise to at least $20 a share on 21st June. 

In short, Gill has gained over $9.3 million on his GME holdings and is holding a loss of nearly $2.5 million on his call options.

The post led to an immediate overnight price rally of more than 19% for the GME share within 20 minutes on the Robinhood market, clicking at $27.58. 

Source: Robinhood

The GameStop (GME) memecoin on Solana surged more than 4x to $0.01608 on 3rd June. Its market cap similarly surged more than 4x to more than $100 million the same day. 

Source: CoinGecko/GME

 

Roaring Kitty Has Been Cheering GameStop for Long

Roaring Kitty has been a cheerleader of GameStop for long and his impact on the share’s price movement particularly grew during the coronavirus pandemic around 2019. He was a leading trader whose social media activity spurred the January 2021 GameStop short squeeze. 

This incident, mainly driven by small investors and social media platforms, made the GameStop stock go from $4 to over $120 in just one month.

Gill’s recent activity is reminiscent of his posting spree during 2021.

The story again proves that social media, public figures, and financial markets are connected. These components paint a complex picture that reflects the evolving nature of investment and speculation.  

As we can observe, traditional financial analysis and the vagaries of social media influencers create volatile market movements.