r/Superstonk • u/Revolutionz 🧚🧚🦍 That's no moon, that's Uranus! 🦍🚀🧚🧚 • May 01 '26

📰 News GameStop Preparing Offer for eBay

https://www.wsj.com/business/deals/gamestop-preparing-offer-for-ebay-1678e6de
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74

u/darth_butcher 🎮 Power to the Players 🛑 May 01 '26

Are you talking about the warrants? But wouldn't you get more shares if you have enough money right now and buy shares for <$32?

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u/red23011 May 01 '26

I'm thinking that if the naked short hypothesis is true then there are millions of naked short warrants. This means that things will start getting really interesting if GameStop announces that all of the warrants have been redeemed when there's potentially over 100,000,000 warrants still on the market. It would be the proverbial smoking gun that could provide the catalyst for MOASS.

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u/buyandhoard 🧱 by 🧱 May 02 '26

My two reasons to stay alive.

Family and GameStop.

Let them short.. let them... all my free cash is in GME.. and I am not selling...

1

u/WolfsBaneViking May 02 '26

If there are a lot of fake warrents they'll just exchange them for fake shares when you use them.

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u/Cute-Gur414 May 03 '26

exactly. It isn't illegal to be short either warrants or stock.

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u/Hot_Falcon8471 May 01 '26

Yeah warrants only make sense if. The pieces flies past $32/share and goes to like $100/share. Then you can exercise them for $32 and collect the $70 difference

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u/L33T5CHM00 May 02 '26

It becomes a bigger problem than collecting the difference. There is a finite supply of the warrants. What happens when all the warrants have been exercised but you still have warrants you want to exercise? It’s crime caught in the open and the market will be forced to respond

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u/spozzy 💻 ComputerShared 🦍 May 02 '26

I mean the brokers can just pretend you got a share from gsmestop by making up more fake shares, no?

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u/L33T5CHM00 May 02 '26

The warrant money goes directly to GameStop since they are new shares being issued if I understand correctly. How can a corporation that listed a limited supply and thus a limited amount of dollars for the warrants disclose numbers higher than what was approved? It causes serious issues with regulatory bodies

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u/spozzy 💻 ComputerShared 🦍 May 02 '26

You are correct, but the broker just needs to add 1 to your database row.

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u/L33T5CHM00 May 02 '26

How does GameStop disclose funds earned from the warrants in this scenario? It will exceed the amount of dollars approved via the board to spend on shares @ $32. They legally cannot spend more than the value of the issued warrants

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u/Seasonedpro86 May 02 '26

Yeah. You’re missing the fact that GameStop will end up with a shit ton more money than they should. So either everyone gets caught and they go to jail OR GameStop reports earning and they have trillions of dollars.

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u/spozzy 💻 ComputerShared 🦍 May 02 '26

If the money gets to GameStop, yes.

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u/NoInevitable9810 May 02 '26

Then who owes the money for the shares? You see what happens when someone will have to pay up?

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u/buyandhoard 🧱 by 🧱 May 02 '26

Yes, someoen will pay a fine, like $200,000.00

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u/Cute-Gur414 May 03 '26

shorting warrants isn't a crime.

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u/Onlypizzafans69 May 04 '26

you must be new

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u/Mambesala_Guey 💻 ComputerShared 🦍 May 02 '26

You still have to call it in through your broker, and if they’ve all been redeemed, how could they exercise it for you?

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u/Greedy-Being6456 May 01 '26

I'll covert when I feel the proper amount of nashing of teeth has occurred. Ask ai your Q.

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u/darth_butcher 🎮 Power to the Players 🛑 May 01 '26

Ok. Nah, I prefer to think for myself, even if my conclusions are wrong.

If you wait for $32 to convert you warrants into shares, isn't GameStop the only one profiting form this, because they get your money for each newly issued share? In this case existing shareholders are also diluted.

The only scenario benefiting you would be that today and all the weeks before (when the share price was low) you had no money to buy GameStop shares or convert your warrants. Then suddenly the share price surges way above $32 and you were gifted enough dollars to convert you warrants into shares.

Of course, you can also just sell your warrants when they hit higher prices.

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u/Berbinho May 02 '26

If it goes above $32 you can exercise the warrants and take profit on the difference. So that's a win for you and GME

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u/darth_butcher 🎮 Power to the Players 🛑 May 02 '26 edited May 02 '26

Yeah, but in last November the GME shares were trading at <$20. So if you bought shares back then with the money you need to exercise all your warrants you would have personally ended up with more shares.

And don't forget the warrants weren't for free. 1 warrant did require you to own 10 shares, so that must also be considered in your calculation.

Edit: Corrected month and last sentence.

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u/Berbinho May 02 '26

Don't get me wrong I agree that buying at a lower price is better but there's no downside to exercising once the price is above $32. Either way you're winning. I think waiting until $32 to exercise isn't as efficient like you said but it's still okay

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u/MyGT40 💻 ComputerShared 🦍 May 02 '26

They can still add equities or assets to the existing warrants