Sep 11, 2024 - 09:58
By wccftech.com

Roaring Kitty’s Mission Accomplished: GameStop Files To Sell Another 20 Million Shares

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

It is becoming increasingly evident, at least in the more discerning financial circles, that Roaring Kitty - the progenitor of sorts for the retail-driven meme stock mania - is on a mission, one that entails recruiting his devoted army of retail investors to periodically pump the price of GameStop shares, allowing the company to then leverage its artificially inflated stock price to raise more cash.

Roaring Kitty's GameStop Pump

In early June, Keith Gill - who is popularly known by his Reddit alias Roaring Kitty - revealed that he owned 5 million physical GameStop shares, and retained control over an additional 12 million shares through his 120,000 call options on the stock bearing a strike price of $20 and expiring on the 21st of June, igniting bouts of heightened momentum in GameStop shares in the process.

Related Story Roaring Kitty Is Apparently Back To His GameStop-Pumping Ways

After failing to spark a sustained bullish momentum in GameStop shares, however, Roaring Kitty announced on the 13th of June that he had sold all of his call options and that he had converted the proceeds into additional shares. As of the last available update, Roaring Kitty owned 9.001 million GameStop shares, up from his original 5 million shares.

While Roaring Kitty's antics failed to do much for the ordinary retail traders, his moves in May and June did allow GameStop to raise additional cash via an at-the-market offering of 20 million shares.

Well, three months later, as Roaring Kitty continued to offer retail traders hope by posting cryptic memes and using his brief love affair with Chewy Inc. as a distraction, GameStop is out today with another at-the-market offering of up to 20 million shares.

At the time of writing, GameStop shares are down ~10 percent in after-hours trading. What's the definition of madness again?