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Mudrick Capital has sold all of its shares in AMC Entertainment, according to a new report from Bloomberg News.

On Tuesday, AMC announced the $ 230.5 million investment in a securities file that was released before the opening bell. The company’s shares rose as much as 22% on the news.

Bloomberg now reports that Mudrick sold all of his shares for a profit on Tuesday.

Mudrick officials did not immediately respond to CNBC’s request for comment.

Mudrick had bought 8.5 million shares at $ 27.12 each, according to the AMC filing. The company’s stock rose as high as $ 32 per share on Tuesday afternoon, meaning the company could easily have made more than $ 40 million on the rally.

According to Bloomberg, the decision to dispose of the stake came after the company concluded that AMC’s stock was overvalued.

Even AMC has admitted that the company’s stock doesn’t trade on its fundamentals.

“Our market capitalization, as implied by various trading prices, is currently reflecting valuations that differ significantly from those prior to the recent volatility and that are significantly higher than our market capitalization immediately prior to the COVID-19 pandemic,” AMC executives said in the SEC filing.

“And to the extent that these valuations reflect trading dynamics unrelated to our financial performance or prospects, buyers of our Class A common stock could suffer significant losses if market prices decline from a return to previous valuations,” the filing stated .