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Roaring Kitty’s GameStop Stake Increases to 9 Million Shares Following Sale of Big Options Position

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Keith Gill, also known as Roaring Kitty, recently hosted a YouTube livestream on June 7, 2024, where he shared that he had increased his ownership in GameStop’s common stock and was now holding more than 9 million shares. Gill posted a screenshot of his E-Trade portfolio on Reddit’s Superstonk forum, revealing that he also had over $6 million in cash. This update came after he first disclosed his position in the meme stock frenzy in 2024, where his portfolio had 5 million shares and 120,000 call options against GameStop. Call options give the holder the right to buy shares at a specified price by a certain expiration date.

It is unclear how exactly Gill acquired the additional 4 million shares to reach a total of 9.001 million. He could have sold his 120,000 call contracts and used the proceeds to purchase the extra shares, or he may have sold a portion of the options position and exercised the rest early. There was a notable increase in trading volume of GameStop call contracts with a strike price of $20 and an expiration date of June 21, the same options that Gill owned. This, along with declining prices in GameStop shares and call options, led to speculation that Gill was offloading his position.

Many had speculated that Gill would not hold onto all of his calls until expiration, as he would have needed $240 million to exercise all of them, far more than he publicly showed in his E-Trade account. Despite the uncertainties surrounding his trading strategy, the total value of Gill’s portfolio, including cash, had increased to over $268 million as of Thursday evening, up from $210 million on June 2. This news coincided with GameStop shares surging more than 14% on the same day.

GameStop’s annual shareholder meeting faced disruptions due to computer problems on Thursday, with servers crashing under the high interest in the stream. The company recently raised over $2 billion in an equity sale, taking advantage of the renewed meme stock rally. GameStop announced that it plans to use the funds for general corporate purposes, including potential acquisitions and investments. This move aligns with the company’s efforts to capitalize on the increased attention and interest in its stock.

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