GameStop stock surges after Roaring Kitty returns with $213 million “YOLO” bet

Keith Gill, who is also known as Roaring Kitty, recently shared on Reddit that he holds a $213 million position in GameStop’s stock. He also has call options worth $65 million for a strike price of $20, expiring on June 21, with a total of 120,000 positions. As of May 31, the stock closed at $23.14.

Roaring Kitty, also known as “DeepF**kingValue”on Reddit, shared a post on the /r/Superstonk subreddit featuring his 5 million GameStop shares. This update from Gill on his positions marks the first in three years.

Paul Dano portrayed the lead figurehead behind the 2021 GME short squeeze in the 2023 movie Dumb Money, which documented the GameStop stock saga of that year.

Despite not going unnoticed, Roaring Kitty’s call positions worth $65.7 million have caused a surge in the stock by 85% in pre-market valuation. As of writing, the stock has risen by over 20 points to approximately $43.30, resulting in a total position value of $213 million during Monday’s pre-market trading.

If GameStop’s pre-market trading figures remain stable, it could result in an increase of approximately $8 billion to the stock’s market capitalization.

Posting on his X / Twitter account, Gill shared a picture of a Uno reverse card, simply indicating that he currently possesses 5 million shares in GME.

pic.twitter.com/zUuccrKWZr

— Roaring Kitty (@TheRoaringKitty) June 3, 2024

Redditors are expressing their excitement for the reappearance of Roaring Kitty, as seen by their comments on a recent post: “This is a historic moment”, “As long as he’s in, I’m in too”, and “The king has returned”.

Currently on X/Twitter, there has been a notable rise in GameStop’s popularity, with a 21% increase in the number of mentions on the platform over the span of the past week.

If GME continues to experience a significant increase in value, it is possible that the conditions necessary for another short squeeze similar to the one seen in 2021 could be recreated. As reported by Reuters, the current surge in GME’s price could result in short sellers of the stock suffering “nearly $1 billion”in losses on paper.