What happened

Shares of Castor Maritime (NASDAQ: CTRM) extended their recent gains on Monday. By the close of trading, the dry bulk shipping company's stock price was up 31%.

So what 

Castor Maritime is growing its fleet by acquiring new vessels. On Feb. 1, the shipping specialist announced an agreement to purchase a 2010 Kamsarmax dry bulk carrier for $15.85 million, which it expects to be delivered within the first quarter of 2021. On Feb. 3, the company said it reached a deal to buy a 2009 Kamsarmax dry bulk carrier for $14.5 million, which is also expected to be delivered in the first quarter. 

A person points to an upwardly sloping line.

Castor Maritime's stock price rose sharply on Monday. Image source: Getty Images.

"Upon completion of our recently announced acquisitions, our fleet will consist of nine vessels, tripling in size since last summer," CEO Petros Panagiotidis said in a press release announcing the deal. "We are dedicated to further expanding our fleet by deploying our capital in the most productive manner, taking advantage of attractive opportunities presented to us in all vessel sizes and segments." 

Now what

Castor Maritime appears to have caught the attention of traders on social media site Reddit. Some people are encouraging other investors to buy the heavily shorted penny stock in hopes of igniting a short squeeze. If they're successful, they could drive the shipping company's share price even higher, at least temporarily.

With the bulls and bears set to battle it out, Castor Maritime's stock price is likely to remain volatile in the days ahead.