The New York Stock Exchange (NYSE) has imposed short selling restrictions (SSR) on GameStop, after the number has increased to GameStop’s famous 2021 brief squeeze.
GameStop (GME) short sales – total number of shares sold in a specific time frame – rose 234% in 24 hours to 30.85 million shares sold on March 27 according to to TradingView data.
SSR begins when the stock drops more than 10% from the previous day’s closing price. GameStop shares fell 22% on trading day, removing 12% earnings from Bitcoin announcements according to Conduct Google-funded data.
At the time of publication, GME traded at $22.09.
GameStop Shorts Roll Close to 2021 Short Squeeze Level
This rule applies to the rest of the trading day and the next trading day. Kevin Malone, President and CEO of Malone Wealth explain In the March 27 X post, “GameStop has 50 times more stock today than last Thursday. It’s statistically impossible without a naked short selling.”
GameStop’s short sales reached 30.88 million on March 27. source: TradingView
This figure is close to the famous level of GameStop stock in January 2021 The meteorite has gone After a “short squeeze” of stocks, hedge funds and others Short seller Although some retail traders have received considerable returns.
The highest point reached for the month was 33.26 million shares on January 19.
GameStop Bitcoin purchase is “dot-comish”
GameStop doesn’t specify how much bitcoins it plans to buy, but the company announced after the market closed on March 26 $1.3 billion convertible notes issuance.
However, some analysts and commentators question GameStop’s plan to start buying Bitcoin. Talk to Yahoo finance On March 27, Tastylive founder and CEO Tom Sosnoff said GameStop’s decision to buy bitcoin was “a small dot-comish” for him.
source: Hans Akamatsu
“It feels a bit like, oh, I’m going to throw a dot com at the end of my name and I’m going to buy some bitcoin with the extra cash because we can’t find a company that will absorb.”
Meanwhile, Bret Kenwell, Etoro’s US Investment Analysttold Reuters on March 27, “Investors are not necessarily optimistic about the underlying business.”
The biggest day of short sale is still the return of Keith Gill
The largest day of short selling still belongs to June 3, 2024, reaching 46.2 million.
This is the time for Keith Gill, a stock trader known for GameStop Short Squeek in 2021. Revealed on June 2 He has started trading GameStop stock again, this time with a $180 million product.
Related: Companies without business model “buy bitcoin” – Angel investor Jason Calacanis
GameStop says convertible premium notes (debts that can be converted into equity later) will be used for general corporate purposes, including the acquisition of Bitcoin.
Some analysts view the announcement of convertible notes as a reason for the stock’s decline.
Han Arkhamchu explain In the March 27 X post, GameStop’s stock fell for the same reason strategy (formerly a micro strategy) after issuing convertible notes.
“In 2021, MSTR released a 0% convertible note of $1.05B, and the stock fell after the announcement of hedging shorts, but then exploded in Bitcoin tearing and arbitrage,” Akamatsu said, “Akamatsu said:
“GME is following the same blueprint right now…if GME or BTC goes up a lot, then the trade will be very interesting because we have a squeeze opportunity here.”
Magazine: Arbitration Co-founder skeptical toward a based and local reel: Steven Goldfeder
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
