Keith Gill, aka Roaring Kitty, aka DeepF***ingValue, is again making headlines. But a passing comment he made years ago seems to have signaled today’s developments. On Dec. 20, 2020, under a post where Gill revealed his $3.4 million position in GameStop (GME), a Reddit user asked him, “Seriously what is your exit strategy here” Gill’s response was a simple yet cryptic, “What’s an exit strategy?”
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This comment seemed like a witty or dismissive reply back then, but looking back, it definitely took on a new meaning. Gill’s lack of worry about an exit strategy showed his strong belief in GameStop’s potential and his commitment to holding onto his shares for the long term, no matter how the market changed.
If the last week has taught us anything, it’s that he has stuck to this mindset. After a long time out of the spotlight, he reappeared and revealed significant holdings in GameStop. On June 2, 2024, Gill posted a snapshot of his portfolio on Reddit’s r/superstonk message board. The snapshot showed:
5 million GameStop shares
120,000 GameStop $20 call options (expiring June 21)
$29.2 million in cash
$210 million in total
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To no one’s surprise, this huge revelation sparked renewed interest and speculation about Gill’s investment strategies from amateur traders to financial analysts. His portfolio clearly shows that he’s more invested in GameStop than ever, which fits his earlier exit strategy comment.
The following day, he posted another screenshot of his GME positions on the r/Superstonk subreddit, revealing his net worth of $289 million.
However, the most interesting part about all of this is that if Gill exercises his 120,000 call options, he will acquire an additional 12 million shares, resulting in a total of 17 million shares. Per CNBC, depending on the stock price, this stake could be worth between $476 million (at $28 per share) and $1.1 billion (at $64.83 per share).
Troubles Ahead?
However, it’s not all smooth sailing for Gill. The Massachusetts Secretary of State’s Office is currently investigating his trading practices. Short-seller Andrew Left also raised doubts about ‘Roaring Kitty’s’ actions, suggesting that someone else might be operating behind the scenes. Additionally, Left recently returned to shorting GME, three years after he famously lost big while shorting the stock.
Adding to Gill’s worries, Morgan Stanley is reportedly considering banning him from the E*Trade platform over alleged stock manipulation.
In response, prominent investor Ross Gerber cautioned Gill about his short-term position in GameStop Corp. “Kitty better be careful exposing such a short-term position with so many enemies. Where would he get all the money … he’s got to sell the options soon. $gme,” Gerber tweeted.
Gill’s actions suggest that his strategy has always been to hold onto his shares and possibly buy more instead of planning an exit. His 2020 comment, “What’s an exit strategy?” now seems prophetic, highlighting his long-term approach to investing in GameStop.
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This article ‘What’s Exit Strategy?’ Roaring Kitty’s Long Forgotten Reddit Comment Signaled What’s Happening Today originally appeared on Benzinga.com
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