History is being written on Wall Street today. ‘Circuit breaker’ is being triggered to keep GME stock from going through the roof as short squeeze of historical proportions is taking place. Billionaire investor Ryan Cohen announced last year that he had been preparing to take Gamestop (NYSE:GME) company to new, digital, era. No one knows if Chewy founder will make a miracle with Gamestop, but GME stock is a miracle on its own.
Cohen’s RC Ventures LLC laid out roughly $53 million, according to SEC filings, to buy more than 9,000,000 shares of GME at an average price of $5.9.This of course boosted the morale of Wall Street Bets subreddit group and the rest is history. The purchases, which were made last year, mostly in the second part of 2020 created a base for the short-squeeze of epic proportion that is taking place today. When retail investors figured out that short sellers are out of GME stocks, they piled in with millions of dollars.
The value of Cohen’s 12.9 percent stake has skyrocketed by more than 1000 percent thanks to the latest rally in Gamestop’s stock price.
The stock surged another 80 percent on Friday to an intraday peak of $76.61, a price that made Cohen’s stake worth nearly $700 million. That gives him a profit of around $650 million on his estimated investment of about $53 million.
With 9,001,000 shares in his hands, Ryan Cohen will become a GME billionaire when the price hits $112, which could be soon if the rally continues.