STT - Here's How Roaring Kitty Could Become GameStop (GME) Stock's Fourth-Largest Shareholder

2024-06-05 10:57:14 ET

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Roaring Kitty, a key figure in the 2022 meme stock craze, shocked the world again after revealing a position of five million shares of GameStop (NYSE: GME ) and 120,000 $20 GME call options expiring on June 21.

Kitty, whose real name is Keith Gill, maintained the position as of the close on June 3 but did not provide a June 4 update. The position was worth $260 million as of June 3.

Gill’s position is obviously significant, but what many don’t realize is that he could become the fourth largest shareholder of the company. That’s conditional on GME closing above the $2o strike price on June 21, with Gill taking delivery of the 12 million shares, as each options contract represents 100 shares.

That would leave Gill with 17 million shares, assuming that he doesn’t sell his existing five million shares. Gill would still be the fourth-largest shareholder of GME even if he sold his five million shares based on first-quarter 13F data .

GME Stock: Roaring Kitty Could Become the Fourth-Largest Shareholder

Here are GameStop’s top five shareholders as of the end of Q1:

1. RC Ventures , an investment vehicle owned by CEO Ryan Cohen: 36.84 million shares.
2. Vanguard : 25.35 million shares.
3. BlackRock (NYSE: BLK ): 22.61 million shares.
4. State Street (NYSE: STT ): 8.28 million shares.
5. Geode Capital Management : 4.32 million shares.

With his five million share stake, Kitty is already the fifth-largest shareholder of GME, edging out Geode’s 4.32 million share stake. He’d already be the fourth-largest shareholder if you count his options as 12 million shares.

Gill’s position could also make him a billionaire, although those odds are quite low. If GME hit its recent peak of $64.38, his position would be worth a staggering $1.1 billion.

On the other side of the trade is Citron Research and founder Andrew Left. Left opened a short position in GME last month before covering it, only to open it back up again. The short seller also questions Gill’s GME investment thesis and believes that he has received external backing for his position.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

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