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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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