Keith Gill, also known as “Roaring Kitty,” has recently upped his ownership in GameStop’s common stock and now holds over 9 million shares. This increase was evident when Gill shared a new screenshot of his E-Trade portfolio on Reddit’s Superstonk forum, revealing his sizable GameStop holdings along with a substantial cash position exceeding $6 million.
The specifics of how Keith Gill managed to increase his GameStop shares to over 9 million remain unclear. One speculation is that he might have liquidated his 120,000 call options against GameStop and used the proceeds to acquire more shares. Another possibility is that he sold a portion of his options and exercised the remaining ones prematurely, leading to a boost in his overall stock ownership.
There was a significant uptick in trading volume involving GameStop call contracts with a $20 strike price and a June 21 expiration date, mirroring the same options held by Gill. This surge in trading activity, coupled with a decline in GameStop stock and call option prices, prompted concerns that Gill might be offloading his positions, contrary to previous assumptions.
To exercise all of his call options, Keith Gill would have required a substantial sum of $240 million to secure 12 million GameStop shares at $20 each, a figure far exceeding the disclosed value in his E-Trade account. Despite the uncertainties surrounding his trading decisions, Gill’s overall portfolio value, encompassing cash holdings, has soared to over $268 million by Thursday evening from $210 million on June 2.
GameStop experienced a notable surge exceeding 14% in its share price on Thursday, coinciding with disruptions during the company’s annual shareholder meeting due to server crashes caused by overwhelming participation in the event. Moreover, GameStop seized the opportunity presented by the resurgent meme stock craze to raise over $2 billion in an equity sale, aiming to utilize the proceeds for general corporate purposes, potentially including acquisitions and investments.
Keith Gill’s escalating ownership in GameStop, characterized by his augmented share holdings and a substantial cash position, has garnered attention from investors and market observers alike. The intricacies of Gill’s trading maneuvers, particularly concerning his call options and their financial implications, continue to fuel speculation and scrutiny within the investing community. Furthermore, GameStop’s recent financial moves and stock performance underscore the ongoing volatility and intrigue surrounding meme stocks in today’s market landscape.