According to U.Today, Citron Research, a well-known short-selling agency, has announced that it will cease shorting GameStop (GME) and has praised Dogecoin (DOGE), the original meme cryptocurrency. The agency, which regularly informs its customers about overvalued companies or those suspected of fraudulent activities, has decided to respect the market's irrationality. This decision was not due to a belief in radical changes in GameStop's future fundamentals, but because the company has $4 billion in the bank, providing enough runway to appease its shareholders.
The agency used Dogecoin as an example of a similar asset, which has a market capitalization of $20 billion, to illustrate the market's irrationality. However, Citron Research's founder, Andrew Left, stated that if GME's share price reaches $45-$50, he would consider shorting it again.
In other news, GameStop recently released its financial results for the first quarter of this year and announced plans to issue more shares, causing the share price to drop. The company gained fame in 2021 following a short squeeze. Several prominent figures in the finance and cryptocurrency sectors, including Anthony Scaramucci and Jan3 CEO Samson Mow, have suggested that GameStop should start buying Bitcoin and adding it to its corporate treasury. They believe that this move would result in immediate 'Godzilla candles' for both Bitcoin and GME.