Keith Gill, the stock trader famed for his role in the 2021 GameStop short squeeze, is on the verge of becoming a billionaire as GameStop shares continue to rise.
Known online as “Roaring Kitty” and “DeepFuckingValue,” Gill disclosed on June 2 that he had resumed trading GameStop stock with a $180 million stake.
Gill posted details of his new position on Reddit, revealing a $115.7 million investment in GameStop shares and $65.7 million in call options. This revelation once again shook the stock market, causing GameStop’s stock price to surge. On Robinhood’s overnight markets, GameStop shares jumped by 19% within 20 minutes of Gill’s post, leading to a year-to-date increase of 38.8% by 2024.
As of now, GameStop stock price is at $46.55, reflecting a 118% gain since Gill announced his position. Analysts at The Kobeissi Letter project that Gill is “set to be a billionaire” as GameStop’s stock price hit $67.50 per share in after-hours trading. If it maintains this level, Gill’s holdings could be worth around $1 billion.
In the past 12 hours, GameStop stock closed 110% higher than on June 6, adding $9.5 billion in market capitalization and elevating the company’s valuation to $20 billion, making it one of the 400 largest public companies in the United States.
However, Gill’s activities have drawn scrutiny. On June 3, GameStop short-seller Citron Research accused Gill of market manipulation in a post on X, suggesting he might be collaborating with others given the size of his trade. Citron Research stated, “We believe someone is backing Gill — there’s no way he made this size trade alone. His reported finances don’t support this trade.”
Subsequently, the Massachusetts securities regulator announced an investigation into Gill’s trading activities. Former Chicago Securities and Exchange Commission official Lisa Braganca told CNBC that the investigation would likely explore whether Gill’s actions constituted market manipulation and if he was working with others or engaging in illegal conduct. The regulators are expected to examine Gill’s communications, including texts, emails, and social media posts.
“They are concerned that this is an effort to manipulate the market and for him to make money for himself through illegal disclosures,” Braganca explained.
