GameStop Raises $2bn in Second Sale After Rally Led by Keith Gill, Roaring Kitty

• The interest of retail investors has made GameStop to raise $2bn in its second sale this month.
• GameStop’s shares jumped by 23% in a single day after the rally led by Keith Gill, known as Roaring Kitty.
• GameStop shares have doubled in the last six months, highlighting the continued influence of meme stocks.

Gamestop, a video game store in the United States, raised over $2 billion in its second auction in just one month following a rally headed by Keith Gill, often known as Roaring Kitty. The spike, sparked by Gill’s first YouTube live broadcast in three years, pushed GameStop stock up about 23% on Tuesday.

GameStop Shares Doubled in Six Months

GameStop’s shares have doubled in the past six months, primarily driven by retail investors who popularized the concept of meme stocks during the pandemic. These equities have frequently seen tumultuous trading, particularly when shorted by professional investors, resulting in substantial price changes.

The Company said it had sold all 75 million shares it had offered investors, raising $2.137 billion. Over the previous month, the Company has raised more than $3 billion in share sales as its stock market valuation soared.

GameStop raised $933.4 million by selling 45 million shares last month. Shares in the Company rose earlier this month when a screenshot was uploaded on 2 June by a Reddit user linked to Mr Gill. The user stated that he had 5 million GameStop shares worth more than $100 million.

Michael Pachter Insights on Gill’s Live Streaming

During the live streaming lead by Keith Gill, a GameStop analyst Michael Pachter stated ,

Interesting to watch GME post the Roaring Kitty livestream.  His 12 M 6/21 call position at $21 cost around $5. He said he would HODL and it looks like the price action reflects normal behavior by the counterparties, with declines accelerating as we approach expiration.

The analyst further noted that they suspect the [Friday’s] live stream from influencer Keith Gill (Roaring Kitty) will keep shares elevated long enough. Also, they warn that the share price would once again begin to descend and approach their new price target. 

GameStop’s Current Holdings

Keith Gill became famous in 2021 after convincing an army of internet investors to fund GameStop. It resulted in an unexpected spike in the faltering company’s stock, putting a financial strain on professional Wall Street firms who had gambled against the shop.

According to a post from that year, Mr Gill had around 200,000 shares valued at $30.49 million. Other so-called meme stocks, such as theater chain AMC and technology giant Blackberry, saw their share values rise during the outbreak. GameStop is presently selling at roughly $30 per share, significantly below the record high of $48 set earlier in June.