Stock Price Surge for GameStop (GME): 10% Increase Sparked by Social Media Influence of Roaring Kitty
GameStop's Stock Surges on Roaring Kitty's Return to Social Media
In a surprising turn of events, GameStop's (GME) stock soared 10.02% to close at $30.86 on May 22, with an additional 22 cents gained in after-hours trading. The rally came despite a lack of company-specific news, with investor focus shifting towards the social media activity of Keith Gill, who is known as Roaring Kitty.
Gill, who gained notoriety during the 2021 GameStop short squeeze campaign, cleared his bio and unpinned a tweet on X (formerly Twitter). These simple actions sparked a buying interest among retail investors, suggesting that their sentiment towards Gill's activity remains strong three years later.
During the 2021 campaign, retail investors targeted Wall Street firms betting against GameStop, with Gill at the forefront of the movement. His influence on GameStop's price remains considerable, with many investors viewing any action from the well-known figure as a signal to buy the stock.
GameStop is also exploring a new growth strategy by planning to raise over $1 billion to purchase Bitcoin as a reserve asset, following in the footsteps of companies like MicroStrategy. This move could attract a broader range of investors, including cryptocurrency enthusiasts and institutional buyers, and provide GameStop with another growth driver beyond its core retail gaming business.
The video game retailer has also been enjoying increased liquidity, with cash, cash equivalents, and marketable securities rising from about $1.2 billion at the end of Q1 last year to nearly $4.8 billion in 2025. Public engagement by its CEO with key crypto figures has further solidified GameStop's evolving identity as a crypto-friendly business.
However, the company's shares remain one of the most volatile in the market, with over 50 moves registering daily closes above 5% in the past year. This volatility pattern has continued since the 2021 short squeeze events, with the company's shares often moving without clear fundamental reasons.
Meanwhile, memecoins are becoming less volatile as investors focus more on utility. Asset managers have filed ETF applications to track some memecoins, indicating institutional interest in previously speculative assets. The SEC recently delayed its decision on Grayscale's Dogecoin ETF application, which showcases ongoing interest from investors.
GameStop's planned Bitcoin strategy could potentially add utility to its business model, providing more fundamental reasons for future price movements. However, risks remain, as declines in the value of Bitcoin could negatively impact the company's financial position and share price. The ultimate success of this strategy will depend on both the performance of Bitcoin and the company's ability to execute its capital allocation plan.
Retail investors, who gained notoriety during the 2021 GameStop short squeeze campaign, saw Keith Gill, known as Roaring Kitty, clearing his bio and unpinning a tweet as a potential signal to buy GameStop's stock. Meanwhile, GameStop is planning to raise funds to purchase Bitcoin as a reserve asset, aiming to attract cryptocurrency enthusiasts and potentially add utility to its business model.
%3A%2010%25%20Increase%20Sparked%20by%20Social%20Media%20Influence%20of%20Roaring%20Kitty){kind=link}