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- Keith Gill (Roaring Kitty/DeepFuckingValue) disclosed a huge position in GameStop shares and call options worth $181.4 million, causing the stock's value to rise rapidly.
- Gill's return to social media last month had already led to a rally in GameStop shares, but the recent revelation of his portfolio reignited the hype around “meme stocks” and the share price shot up from $22.91 to over $40 at the market open on June 3.
- Gill's involvement in the GameStop saga dates back to 2019, when he invested $53,000 in the struggling retailer, attracting a following of retail investors that led to a short squeeze in January 2021 that drove the stock price up over 1,000%.
Keith Gill, known as “Roaring Kitty” and “DeepFuckingValue” (DFV), has resurfaced after a three-year hiatus and reignited the hype surrounding GameStop stock. Gill posted a screenshot on the Reddit forum r/Superstonk revealing a massive $181.4 million position in GameStop stock (GME) and call options.
The screenshot showed that Gill held 5 million GME shares worth $115.7 million and $65.7 million in call options, betting that GME would be worth at least $20 per share by June 21. This revelation sent shockwaves through the market, sending GameStop stock up over 19% in overnight trading.
Gill's return to social media last month had already sparked a rally in GME shares, with the stock price reaching $48 before falling again. However, his recent portfolio revelation has reignited the hype around “meme stocks,” with GameStop shares rising from $22.91 to over $40 at market open on June 3.
The short history of GME and Roaring Kitty
Gill's involvement in the GameStop saga dates back to 2019, when he invested $53,000 in the struggling retailer because he believed it was undervalued. His bullish analysis and regular updates on Reddit and YouTube attracted a following of retail investors, leading to a short squeeze in January 2021 that sent GME stock soaring over 1,000%.
This series of events was called the battle of the retail investors against the hedge funds and elites. It was eventually presented in a documentary on Netflix called “Eat The Rich: The Gamestop Saga”.
Today, in the present, Roaring Kitty started posting memes on X and making his position known on Reddit.
Impact on Gamestop’s share price
Gamestop (NYSE:GME) is known as a video game retailer with stores nationwide. However, in recent years, many have argued that its business model is dying, and institutional investors have shorted the stock, anticipating the company's failure.
However, interest in the Roaring Kitty saga has led to a huge surge in interest in the stock. Over the past month, GME is up 62% compared to just 1.95% for the S&P 500.
It will be interesting to see what unfolds over the next month, as June 21, 2024 is the expiration date of the option for which Gill has the largest concentrated position. Volatility is likely to increase as we approach that date and excitement builds on social media.
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