Shares in GameStop rocketed on Monday, following speculation that Keith Gill, aka Roaring Kitty - the man at the centre of last year's meme stock mania, is sitting on a large holding of the gaming retailer shares, potentially worth millions. The volatile GameStop stock wrapped up the day with a sturdy 21% increase, having at one point surged by as much as 75%.
Keith Gill also goes under another pseudonym, Deep F- - - - - - Value on Reddit. On Sunday night, this account uploaded a screenshot on r/SuperStonk forum which followers have interpreted as an insight into his current portfolio. The image suggested that Gill holds 5 million GameStop shares valued at $115.7million according to Friday's closing price.
Highlighted were 120,000 'in the money' call options for GameStop, with a strike price of $20 and set to expire on June 21. Each option was purchased at approximately $5.68. Further intrigue followed on Gill's X account when he posted an image of an Uno Reverse card. However, this cryptic manoeuvre was not captioned.
This online flurry has occurred roughly three weeks after "Roaring Kitty" made his first digital appearance in three years, prompting a spike in GameStops share price. This May saw him stir things up again posting through his X account, an image of a man perched on the edge of his chair a meme amongst gamers symbolising intense focus.
The post on X was followed with a YouTube video from years before when Gill championed the beleaguered company GameStop saying: "That's all for now cuz I'm out of breath. FYI here's a quick 4min video I put together to summarize the $GME bull case."
'I ventured into Alcatraz after dark and was terrified by what I saw and heard'
GameStop in 2021 was a video game retailer that was struggling to survive as consumers switched rapidly from discs to digital downloads. Big Wall Street hedge funds and major investors were betting against it, or shorting its stock, believing that its shares would continue on a drastically downward trend.
Gill and those who agreed with him changed the trajectory of a company that appeared to be headed for bankruptcy by buying up thousands of GameStop shares in the face of almost any accepted metrics that told investors that the company was in serious trouble.
That began what is known as a "short squeeze," when those big investors that had bet against GameStop were forced to buy its rapidly rising stock to offset their massive losses. The day's meme surge also included movie theater chain AMC Entertainment Holdings, which gained more than 11%. But others shed their gains over the course of the day.
Koss Corp. a headphone manufacturer, which was 17% at one point, ended up less than 1%. And BlackBerry, the one time dominant smartphone maker, finished unchanged after being up almost 6%.
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