GameStop shares experienced a decline in after-hours trading following Keith Gill’s disclosure of his holdings on Reddit. This revelation came as a surprise, considering that the share price had already decreased. However, it is important to note that despite the initial decline, the shares had still increased in value before experiencing a subsequent decline.
In contrast to his previous “YOLO update,” Gill, also known as Roaring Kitty, announced that he now had an additional five million GameStop shares. This stark contrast to his previous statement is significant, considering that Gill’s $20 call options in GameStop were once valued at $82 million. These options were sold or executed, resulting in the situation at hand.
Furthermore, Gill’s most recent report on Reddit revealed that he had less cash available compared to before. The report, submitted under his DeepFuckingValue account, disclosed that his cash holdings had decreased from $29 million at the beginning of the week to $6.3 million by the end of the week. This significant fall in cash holdings raises questions about Gill’s current financial position.
Gill’s most recent post also mentioned GameStop’s total value, which is currently estimated to be $262 million based on his holdings of 9 million shares. However, this is a notable decline from the estimated $586 million worth of holdings he had just a week ago, representing a 55% fall.
Interestingly, anticipation of Gill’s return to live streaming on YouTube caused a spike in GameStop shares the previous week, leading to a 14% increase and reaching $29.12. However, as this article was being prepared, the stock price witnessed a minor dip, falling to $28.84.
It is worth mentioning that if Gill had purchased all of the options contracts he previously owned and exercised them, he could have acquired 120 million shares of GameStop. However, it is important to note that Gill did not own the shares himself, and GameStop was not accountable for carrying out the transaction.
Roaring Kitty has made a profit by selling his $20 GameStop call options and exercising his right to purchase additional shares. Starting with 5 million shares, he now has 9 million shares available to him. This indicates his continued involvement and interest in GameStop.
Reports suggest that both the Securities and Exchange Commission and the Massachusetts Securities and Exchange Commission are aware of Gill’s trading and social media activity. This indicates that regulatory bodies are closely monitoring the situation.
In conclusion, Keith Gill’s recent disclosure of his GameStop holdings on Reddit has sparked significant fluctuations in the stock’s value. Despite a decline in share prices, Gill’s increased holdings and continued involvement in GameStop suggest that he remains optimistic about the company’s future. However, regulatory authorities are closely watching these developments to ensure transparency and compliance with trading regulations.
