GameStop’s Roaring Kitty, the trader behind the GameStop (GME) stock craze, is dominating.
GameStop’s Roaring Kitty, the trader behind the GameStop (GME) stock craze, is making headlines after her first YouTube livestream in three years.
During a live stream on June 7, Roaring Kitty revealed its portfolio and announced that it was down $235 million as shares of GameStop fell sharply from the previous day’s close, from around $46, to a low of around $26. GameStop shares are trading at around $28 as of this writing.
The meme trader, real name Keith Gill, also revealed he had call options on 12 million Gamestop shares.
Roaring Kitty announced its live stream on June 6 by scheduling a YouTube video for the following day. That day, GameStop shares rose from $32 to $46.55, with aftermarket trading reaching a staggering $61.27.
Using the secondary market price, Roaring Kitty was expected to become a billionaire based solely on its position in GameStop. The only condition was that the market trades on June 7 at the same price levels as outside of hours the day before.
about: Roaring Kitty’s GameStop earnings hit $300 million and billionaire status is within reach.
Jill now faces many challenges. It would need $240 million in cash to exercise the call options and would not be able to sell them due to the negative market reaction. He could choose to sell his GameStop shares to get cash in exchange for call options, but that would depress the stock price.
Outside financing would also cause problems for the already vetted meme trader, who testified before Congress in 2021 following the original GameStop stock pump. At the time, Gill told lawmakers he believed GameStop’s price was undervalued and stood by his assertion that the company would experience a renaissance.
The trader is also facing pressure from institutional players and platforms such as E*trade, which announced that it may remove Roaring Kitty from its platform due to market manipulation concerns.
GameStop shares were reportedly halted six times on June 7 due to extreme price volatility. GameStop even had to issue a letter stating that the sharp rise in its stock was not due to the company’s fundamental performance.
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