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News/Roaring Kitty's $300 Million GameStop Bet Shakes Markets, Memecoins Surge

Roaring Kitty's $300 Million GameStop Bet Shakes Markets, Memecoins Surge

Van Thanh Le

Jun 7 2024

last month3 minutes read
Robotic swarm overwhelms frantic stock traders

The Meme Stock Mania Reignites

Volatility reigned supreme as Keith Gill, the Reddit trader known as "DeepF**kingValue" and "Roaring Kitty," rekindled the GameStop (GME) frenzy. His Reddit post on June 2, 2024, revealing a staggering $116 million in GME shares and $63 million in call options set to expire on June 21, netted him a cool $6.8 million profit – and counting. Gill's positions, currently valued north of $300 million, could potentially make him the first GME billionaire if the rally persists. 

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Source: Roaring Kitty's post on Reddit.

Gill's resurgence sent shockwaves through the markets, with GameStop's market cap ballooning by a whopping $5 billion in a single day. GME stock nearly doubled in pre-market trading, soaring to $38.88, while AMC Entertainment Holdings Inc. (AMC) surged by 36%. The ripple effect extended to meme tokens, with the GME token on Solana's blockchain skyrocketing by over 300%, trading at $0.0129 per token.

The frenzy wasn't confined to GME, however. Meme tokens like GMEKITTY, and ROAR saw astronomical gains of 221%, 298%, and 315%, respectively. AMC soared 180%, while the GME token on Base jumped 90%. Most notably, the GME token on Ethereum surged by a staggering 1,200% in a single day. Wall Street-themed meme coins also rode the wave, with Wall Street Baby on Solana up 400%, WSB Coin up 200%, and other "WSB" tickers posting double-digit gains.

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Amidst the chaos, a savvy trader capitalized on the market movement by selling 3.5 million GME tokens for 260 SOL ($43,000) at $0.01226 per GME, while still holding a staggering 108 million GME tokens worth approximately $1.5 million. Lesser-known meme tokens like toshi (TOSHI), mog (MOG), keycat (KEYCAT), and wen (WEN) also basked in the limelight, rising by up to 37% in the past 24 hours.

The Wall Street Bets subreddit moderators, however, reminded users that their forum is not solely focused on GameStop, indicating mixed reactions to Gill's return. Meanwhile, Citron Research, undeterred by its $100 million loss during the 2021 short squeeze, announced another short position on GME.

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Gill's influence can be traced back to his GameStop financial analysis on Reddit stock market forums starting in 2019, which ignited the January 2021 short squeeze. His initial $53,000 investment peaked at nearly $50 million, creating a viral phenomenon and a cult following. While meme stocks and related tokens experienced a revival reminiscent of the 2021 hype, volatility remained a constant, with stocks like AMC and GME initially spiking before plummeting after initial gains.

Roaring Kitty Fuels GME Memecoin Surge, Again

GME coin rocketed over 150% within 24 hours, hitting $0.029 on June 7, 2024, after Keith Gill, known as Roaring Kitty, announced his YouTube comeback. This surge marked a 750% rise in GME memecoin over a week, climbing from $0.003 on June 2, 2024. Concurrently, GameStop's stock experienced a 110% jump following Gill's announcement.

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Roaring Kitty-themed memecoins GMEKITTY, and ROAR saw significant gains of 150%, 330%, and 150% respectively, although they later retraced some of these gains. GameStop shares leapt 47% to $46 and then to $61 in after-hours trading. Large-scale traders, known as whales, aggressively bought GME and KITTY post-announcement, with one spending 6,460 SOL ($1.1 million) and another investing $2 million in Solana’s native token into the GME memecoin, yielding $1.5 million in profits.

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Solana’s active addresses surged by 23.0% over the past month, although revenue declined by 37.6% despite the uptick in activity. 

GameStop's financials reflected a net loss of $32.3 million in Q1 2024, improved from a $50.5 million loss in Q1 2023. Net sales dropped to $0.882 billion from $1.237 billion year-over-year, while SG&A expenses decreased to $295.1 million from $345.7 million. Gross profit fell to $244.5 million from $287.3 million, and operating loss narrowed to $50.6 million from $58.4 million. GameStop provided no specific guidance for upcoming quarters. Its stock price plummeted 20% pre-market after releasing the Q1 earnings report.

On Polymarket, users bet on Gill potentially reaching billionaire status by June 7, 2024. With a $583 million position in GameStop, Gill’s holdings reflected $382 million in profits, needing a $9 rise in GME stock for his assets to hit $1 billion. With today's GameStop earnings report, Polymarket users estimated just an 11% probability of this milestone.

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Some crypto traders argue that Gill “has already won” irrespective of becoming a billionaire. Veteran trader TheFlowHorse praised Gill's long-term strategy and patience, noting the contrast between the GME saga's strategic focus and the crypto market's typical short-term tactics.

Conclusion

As the dust settles, the meme stock mania's resurgence serves as a stark reminder of the power of social media and the unpredictable nature of markets, where fortunes can be made or lost in the blink of an eye.

FAQs

1: Who is Keith Gill, and what is his role in the GameStop saga?

Gill, known as "DeepF**kingValue" and "Roaring Kitty," is a Reddit trader who ignited the GameStop frenzy by posting his positions. His social media activity significantly influenced markets, leading to the 2021 short squeeze.

2: What was the impact of Gill's recent social media post?

Gill's post revealing his $116 million GME shares and $63 million call options caused GameStop's market cap to surge by $5 billion in a single day, with the stock nearly doubling in pre-market trading.

3: Which other stocks and tokens were affected by the meme stock mania?

AMC Entertainment Holdings Inc. (AMC) rose by 36%, while meme tokens like GME, KITTY, and ROAR saw gains of over 200%. Wall Street-themed meme coins like Wall Street Baby and WSB Coin also experienced significant price increases.

4: What was the historical context behind the GameStop phenomenon?

Gill's analysis of GameStop's financials on Reddit in 2019 led to the January 2021 short squeeze, where his initial $53,000 investment peaked at nearly $50 million, creating a viral phenomenon and a cult following.

This article has been refined and enhanced by ChatGPT.

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