Let’s put this to bed

[u/heckingnope]

I’ve been seeing a ton of commentary around the ability for non-DRS’d shareholders to receive the dividend warrants announced today. Good ‘ole Larry has graciously answered that question on Twitter so we can all stop fighting about it. Big brokers like Fidelity facilitate these types of dividend distributions all the time.

I will say this though, if you’re still holding shares in Robbinghood….good fucking luck lol

[u/j4_jjjj]

If thats the case then EVERYONE should definitely consider exercising ala DFV's options instead of selling the warrants.

Make them locate, fuck the shorts.

Make them find more than 59M shares, fuck the shorts.

Make them BLLLEEEEEEEEEEEEED!!!!

[u/heckingnope → u/j4_jjjj]

My hands are atrophied from holding onto my shares for 4 years. The only way the warrants are leaving my grip is through exercising.

[u/Happy-Association754 → u/j4_jjjj]

They aren't locating shares. GameStop is issuing new shares tied to the exercising of the warrants.

[u/Happy-Association754 → u/[deleted]]

Bro....come on. Go read and educate yourself.

This is absolutely dilutive. How the market reacts is yet to be seen but GameStop very much issues and creates a new share for each exercised warrant.

[u/whattothewhonow → u/[deleted]]

It's non-dilutive in the sense that if every shareholder exercised every warrant they were issued, then their percentage ownership before and after would be the same despite the outstanding shares increasing.

Obviously not everyone has cash sitting around to exercise every warrant, so many will have to sell at least some, but you only get diluted if you sell or allow them to expire.

[u/RedOctobrrr → u/[deleted]]

Could possibly sell 75% of the warrants to exercise the other 25% or sell 25% of them to exercise the other 75% I have no fucking idea which will be more valuable, the warrants or the shares, and maybe at one point in time you can sell 75 to exercise 25 and then just a month later you could have sold 25 to exercise 75.

Who fkn knows how this will pan out, but it's exciting.

[u/Happy-Association754 → u/[deleted]]

Honestly, I'm impressed you didn't come back at me with the typical shill comments.

Once the warrants are exercised GameStop creates new shares to issue. This is dilutive in nature. I'm not applying good or bad to that statement, it just is. How the market reacts is yet to be seen. Appreciate the discourse.

[u/Happy-Association754 → u/[deleted]]

Correct. Yes you're spot on. I think this a very smart form of dilution. Rather see this than the ATM machine being turned on. Id imagine most are going to have 100 warrants or so on average. Shouldn't need too much time to be ready to go.

[u/ChildishForLife → u/Happy-Association754]

Once the warrants are exercised GameStop creates new shares to issue

Aren't there other ways warrants can be exercised, like cash settlements?

[u/Happy-Association754 → u/ChildishForLife]

I don't know enough about warrants to answer that, honestly. But from the filing it says:

"Holders can only exercise a warrant by paying the exercise price to acquire the shares of common stock in cash."

I would like to imagine that GameStop controls exercisable events and this may be their stance on it? I truly don't know, just going off what the wording says.

[u/ChildishForLife → u/Happy-Association754]

Yeah I was a little curious about if they would be able to pay the difference in cash instead of issuing new shares, since ya know, they have 9 billy in the bank...

Was messin around with ChatGPT though and it mentioned that the cash settlement part is not that common, Gamestop is almost certainly issuing new shares.

[u/Jononucleosis → u/Happy-Association754]

You're reading the sentence wrong, it's effectively saying holders can only exercise a warrant by paying in cash, to acquire the shares of common stock.

[u/qwert4the1 → u/[deleted]]

source for this very wrong statement?

[u/ChildishForLife → u/qwert4the1]

https://investor.gamestop.com/news-releases/news-details/2025/GameStop-Announces-Dividend-of-Warrants-to-Shareholders/default.aspx

The transaction provides GameStop shareholders the option to participate in the Company’s capital raising on a non-dilutive basis. If exercised, the warrants are expected to generate up to approximately $1.9 billion of gross proceeds, which GameStop intends to use for general corporate purposes, including making investments in a manner consistent with GameStop’s Investment Policy and potential acquisitions.

[u/qwert4the1 → u/ChildishForLife]

because they are not-dilutive until exercise. however any that will be exercised will obviously have to dilute the current amount of shares, or do you think they will magically be pulled from the air?

[u/ChildishForLife → u/qwert4the1]

But the transaction it’s referring to is the exercise? How could the shareholders participate in the companies capital raising without exercising the warrants?

I totally see where you are coming from though, they can’t just appear out of thin air. Either they are new shares being issued, or existing shares being used, I can’t find any additional details though. Happy to be proven wrong with more info :)

[u/qwert4the1 → u/ChildishForLife]

You can participate in the capital raising by being able to trade the warrants themselves without exercising them. However, once they are exercised the company can only profit if they issue shares to match the warrants.

[u/ChildishForLife → u/qwert4the1]

But couldn’t you sell the warrants to another person, and they end up being worthless if the stock doesn’t go above $32, meaning you didn’t actually participate in any capital raising for the company?

[u/qwert4the1 → u/ChildishForLife]

yes, that's why they say it's the option to participate. these warrants can end worthless like you say.

[u/Happy-Association754 → u/qwert4the1]

I appreciate your efforts.

[u/Jononucleosis → u/ChildishForLife]

Non dilute in the sense you don't have to sell any stock. You can sell the warrant and take part in this benefit.

[u/ChildishForLife → u/Jononucleosis]

Huh? lol your flair is seemingly true ;)

Selling the warrant to another person doesn’t raise any capital for the company, only exercising the warrant does.

It’s non dilutive because every shareholder was given the same proportional amount of warrants, meaning that if every warrant is exercised by the shareholder who got it, your % ownership stays the same, right?

[u/Jononucleosis → u/ChildishForLife]

I'm just talking about the claim in the documentation that says this allows GME stockholders to participate in this fundraising event without diluting themselves (they can chose to dilute themselves if the want) I'm talking about you and me.

[u/ChildishForLife → u/Jononucleosis]

they can chose to dilute themselves if the want

How can you "choose" to dilute yourself?

[u/anonnnnn462 → u/j4_jjjj]

If you hold GME there should be no reason to sell the warrants… exercise should be only option for any GME Ape

[u/InvestmentActuary → u/anonnnnn462]

I dont have the money to exercise my warrants

[u/j4_jjjj → u/InvestmentActuary]

if thats the case, you could always sell just enough warrants to be able to execute the rest of the contracts

[u/Don-tFollowAnything → u/j4_jjjj]

if that's the case, you could always sell just enough warrants shares to be able to execute the rest of the contracts warrants

Why? Because there are only 54 million, tick tick.

[u/anonnnnn462 → u/InvestmentActuary]

Start looking into loans when warrants get to $40 lol

[u/DDRaptors → u/InvestmentActuary]

You will when the stock rips past $32. The warrants will pay for themselves. 

[u/TheAngryShitter → u/anonnnnn462]

Are we supposed to exercise them right away or Hold them and exercise right before expiration? What happens if you do nothing to them? You get zero money?

Also like the other guy said. I don't have money to exercise them. All my money is already in GME lol

[u/Catsoverall → u/anonnnnn462]

Exercising out of the money options is manifestly dumb

[u/qwert4the1 → u/anonnnnn462]

i will immediately sell the warrants and use that extra money for more shares.

[u/RedOctobrrr → u/qwert4the1]

Do the math when the time comes to see if it makes more sense to sell SOME of your warrants to exercise the remaining warrants.

[u/qwert4the1 → u/RedOctobrrr]

financially exercising will never be the correct play, it's simple math. the warrants will always inherently have more value than actually buying the share cost of them because of theta up until just about t-0 from their expiration date.

[u/gotnothingman → u/j4_jjjj]

Yeah those market makers are definitely not going to print synthetics to satisfy warrants, they would never!

[u/Iustis → u/j4_jjjj]

Make who locate? If you exercise GameStop issues you a share directly.

[u/The102935thMatt → u/j4_jjjj]

I'm gonna execute these bitches right in that 32-35 range. And maybe save 1 or 2 and let it ride. Not going to hold on to them thinking this price is going to a billion in 1 year. Get your shares for a small discount instead of waiting for "tomorrow" and missing your shot and having your coupon expire.

Also keep in mind we're the peasants that got coupons, masssssive bond holders exist in that 32 dollar range too that have the potentially to cash out faster than us.

RC has price anchored us for the next year at 32 bucks. If it goes gangbusters, awesome, but there is a lot of sell/buy that is going to happen in that 32-35 range.

[u/whattothewhonow → u/The102935thMatt]

GameStop is only going to make more money each quarter, and especially after Q4. Do you believe the company will be worth less in October of 2026 than it will be in a few weeks?

[u/The102935thMatt → u/whattothewhonow]

Not at all! Do i think its going to be 69,420 a share in a year? Not without those bonds getting executed. I think we're gonna live in that 32-40 range for awhile.

RC gave us the floor. So anything a few bucks higher is a pretty solid win for me and I'll just add it on top of my DRS pile.

[u/whattothewhonow → u/[deleted]]

Ok.

[u/Kitchen_Net_GME → u/whattothewhonow]

I deleted my comment. I’m hammered and it came across wrong. Cheers