GameStop stock sank 16% on Wednesday after a short seller said it would be abandoning its position.
“Citron is no longer short on $GME,” the company said in an X post, adding that it “respects the market’s irrationality.”
“It’s not because we believe in a turnaround for the company fundamentals will ever happen, but with $4 billion in the bank, they have enough runway to appease their cult like shareholders,” Citron said.
On Tuesday, the video game retailer said that it had raised $2 billion from a share sale, and planned to use the raking for “general corporate purposes,” as well as acquisitions and investments.
Keith Gill, the investor that works under the social media persona “Roaring Kitty,” has taken GameStop’s stock price on a wild ride. The company’s volatility is largely due to its status as a meme stock as its share price increases rapidly due to online attention from dedicated followers.
Last week, GameStop shares tanked 40% after Gill’s YouTube livestream – his first return to the platform in three years.
Citron, which claims to have lost money years ago during GameStop’s previous meme stock frenzy, said in its X post that “the Kitty livestream was still an insult to the capital markets.”
Earlier this week, Gill previously disclosed that he has 120,000 GameStop call options, adding that those contracts are set to expire on June 21.
Nonetheless, Citron said “while the increased share count might temper the mob mentality, Citron will be watching from the sidelines for now.”
