Roaring Kitty on Track to Becoming Billionaire Amid Controversy over GME Stock Investment
Summary:
Keith Gill, known as “Roaring Kitty” online, is projected to become a billionaire due to his renewed investment in Gamestop (GME) shares. He recently revealed his possession of $115.7 million in GME shares and $65.7 million in call options. His announcement provoked an uptick in GME stock price. If GME holds to its current price range, Gill's assortment could be worth $1 billion, according to analysts. Prominent short-seller Citron Research accused Gill of market manipulation and Massachusetts' securities regulator has initiated an investigation into his activities.
Keith Gill, the trader who sparked the GameStop (GME) short squeeze earlier this year, is on track to amass billion-dollar wealth as GME shares continue their upward march. Identified online as “Roaring Kitty” and “DeepFuckingValue,” Gill announced on June 2 that he has returned to trading GME and has a whopping $180 million at his disposal. He declared his position as being $115.7 million in GME shares and $65.7 million in call options on his Reddit account.
When Gill uncovered his renewed interest in GME, it fuelled another ripple in the stock market, prompted a GME stock price hike. As per Robinhood’s overnight markets data, GME’s price surged by 19% within 20 minutes of Gill's post, and GME shares soared 38.8% by 2024. The current GME price stands at $46.55, showing a massive 118% gain since Gill made his position public.
Analysts from The Kobeissi Letter, a global capital markets firm, envisage Gill as a potential billionaire, given that GME stock shot up to $67.50 per share after trading hours. They predict that if GME holds to its current price range, Gill's position could be worth a collective $1 billion. They stressed that GME stock ended 110% up from June 6 and accrued a lofty $9.5 billion in market cap in a mere 12 hours, propelling the firm to a $20 billion valuation, thereby ranking it among America’s top 400 public companies.
However, Gill’s moves have raised eyebrows. Prominent GameStop short-seller Citron Research questioned his act on June 3, accusing him of crafty market manipulation in an X post and speculating collusion with another party. Citron wrote, “We believe someone is backing Gill – there’s no way he undertook this colossal trade by himself. His declared finances can’t cover this trade. Investors will discern this roaring Icarus.”
The news broke on June 4 that Massachusetts’ securities regulator has begun probing into Gill’s activities. Lisa Braganca, ex-Chicago SEC official, explained to CNBC that the investigation would likely scrutinize Gill's possible market-moving behavior, exploring potential collusion or illegal activities. Braganca signaled that investigators might delve into Gill's communications, including texts, emails, and Reddit or X posts. They are worried that this may comprise a bid to manipulate the market and allow Gill to generate personal profit through illicit disclosures.
Published At
6/7/2024 10:47:57 AM
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