GameStop’s three largest shareholders have now made more than $2 billion as its stocks continued to skyrocket throughout the week.
Since Tuesday video game retailer GameStop’s stock has jumped nearly 140 per cent as it was caught in the middle of battle between Wall Street short sellers and independent traders.
The stock price surge, manufactured by an army of amateur day traders in a bid to scupper Wall Street bets against the company, has seen its largest shareholder Ryan Cohen’s net worth explode.
Cohen, who owns a 13 per cent stake in the company, has seen his net worth increase an average of $90 million a day over the past two weeks as stock surged more than 1550 per cent, the equivalent of $4 million an hour.
His stake is now worth around $1.3 billion.
Meanwhile former Credit Acceptance Corp chief executive Donald Foss has seen his five per cent stake grow to be worth more than $500 million, after purchasing it for roughly $12 million last year.
The next largest shareholder, GameStop’s chief executive George Sherman, has seen his 3.4 per cent stake grow to be worth $350 million.
It comes after prominent short-seller Citron Research announced last week that it had shorted GameStop stock, stating that the company was “pretty much in terminal decline”.
This sparked the David and Goliath battle, with one of the independent traders and member of Reddit group r/WallStreetBets stating in an open letter to CNBC: “I sincerely hope they suffer. We want to see the loss porn”.
While the short sellers have indeed lost billions other Wall Street giants like BlackRock, which purchased 9.2 million shares in GameStop last year, have cashed in seeing its stake growth to be worth over $3 billion.
In response to the dramatic events, Citron Research’s Andrew Left told Reuters: “If I had never been involved in GameStop and came to this right now, would I still short this stock? 100 per cent,”
“This is an old school, failing mall-based video retailer and investors can’t change the perception of that.”