Gamestop Surges as Roaring Kitty Discloses $165M Position

The Breakdown First Five - Tuesday, June 4, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Most Boring Bitcoin Pitch Ever

PBS has spotlighted a $100M Bitcoin purchase by the Wisconsin pension system. A far cry from Bitcoin evangelism, Marquette University David Krause explained the strategy at a calm midwest pace. The Wisconsin investment board is seen as a prudent investor who could set the tone for other institutions. Krause dismissed concerns of volatility, pointing out that Bitcoin has matured. He thinks this is just an “entry point” and expects more pensions buying Bitcoin.

4. Binance Will Restrict EU Stablecoins

In preparation for MiCA regulations, Binance will restrict the use of “unauthorized” stablecoins in the EU. The exchange said that only tokens issued by “regulated companies” would be allowed, but did not present a list. The switchover will progress in phases throughout the year, with unauthorized stablecoins becoming unavailable for purchase at the end of June. Binance said they would not delist spot markets, but would encourage users to convert to other assets. 

3. Saylor Settles

Michael Saylor has settled his dispute over DC taxes for $40M. The DC Attorney General’s office called this the “largest income tax fraud recovery” in DC history. Saylor was accused of pretending to live in Florida while actually residing in DC. The original filing claimed $25M in tax evasion. Small change for Saylor, whose net worth is estimated at $4.6B according to Forbes. 

2. Glitch Bankrupts Berkshire

A glitch on the NYSE sent Berkshire Hathaway Class A stock plummeting from $627,000 to $185.10 on the Monday open and halted 40 stocks. The exchange dismissed the possibility of a cyber attack, explaining that a software upgrade had broken price data and circuit breakers. This is the third technical issue over the past week, with some noting the coincidence that T+1 settlement began last Monday. Stock market infrastructure appears to be showing its age. 

1. Game On

Saddle up for another round of the Gamestop Saga. Roaring Kitty disclosed a $165M position in Gamestop stock and options on Sunday night, leading the stock to skyrocket overnight and into the open. It hit $40 at peak, a 70% rise from Friday’s close. E-Trade are reportedly considering whether to kick Roaring Kitty off the platform, with the board pondering whether this is stock manipulation. His position was up more than $100M at yesterday’s close. Is Roaring Kitty trying to run it to a billion? Is he trying to take down the hedge funds? Or does he just like the stock?