Roaring Kitty Now Has To File A Form 13G With The SEC As His GameStop Stake Exceeds The 5 Percent Threshold

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In a striking example of just how disruptive is the ongoing meme stock mania 2.0, one that has seen aggressive albeit ephemeral pumps in GameStop and AMC shares, Roaring Kitty - the inarguable architect of this retail-led movement - now qualifies for the SEC's Form 13G reporting requirements.

For the benefit of those who might not be aware, Roaring Kitty provided an update on Reddit just a few hours back, revealing that he now holds around $65 million worth of $20 calls on GameStop along with over $115 million worth of shares and $29 million in cash.

Related Story After Engineering A Massive Short Squeeze In GameStop In May, Roaring Kitty Reveals A $180 Million Position In The Meme Stock

As per Roaring Kitty's Reddit update, assuming that the post faithfully represents his true holdings, the architect of the meme stock mania now owns 5 million physical GameStop shares. He also retains control over an additional 12 million shares through his 120,000 call options on the stock. This stake of 17 million shares equates to around 5.57 percent ownership in GameStop, based on the company's 305.30 million shares outstanding.

This stake qualifies Roaring Kitty for the SEC's Form 13G reporting requirements under the head of a passive investor, one who owns over 5 percent of a company but does not intend to change or influence that company's control paradigm (through management changes, for example).

Critically, as per the prevailing rules, a Form 13G must be filed "within 10 calendar
days of crossing the 5% threshold." If we assume that Roaring Kitty crossed the 5 percent ownership threshold vis-a-vis GameStop on Friday, he must submit the requisite filing by the 10th of June or face punitive actions, including fines.

Meanwhile, the latest GameStop pump appears to be already fizzling out. To wit, after being up over 80 percent in very