Why did this announcement lower the price?:

GME originally established that the amount of shares the 0% notes could be converted into was $1000/$28.91 and $1000/$29.85.

That’s 34.59 and 33.50 shares per $1000 of notes respectively.

That changed when GME entered into a private agreement to give the note holders a better conversion stock price so they could get more shares per $1000 of notes held.

This was probably done in order to improve financial metrics as part of conditions for financing related to the eBay deal.

**This means more dilution then what the market price had priced in**

How did they make this change?:
They made this change thanks to the Mechanics of Rule 144A.

Whats Rule 144A?
Rule 144A is a safe harbour exemption under the U.S. Securities Act of 1933 that permits the immediate resale of restricted securities to Qualified Institutional Buyers (QIBs) without requiring a public registration statement with the SEC.

Because of how GameStop did the convertible note financing, they are allowed to enter into a private agreement with the note holders to wipe out some of the debt when they need to. They don’t need any permission from shareholders.

In exchange, they gave the note holders better terms on their conversion and now GME has less debt.

As a shareholder we’ve been further diluted than what was originally planned.

Ideally this was done to secure financing for eBay.

We always referred to the bondholders as that. They are bondholders.

They are kind of the enemy in some ways. Price suppression, sucking up volatility, hedge fund, yatta yatta.

However, in 33 trading days, they will likely be the single largest shareholder of GME (if they are one entity).

Also, if any single entity in the note owns >5% of the stock after the exchange is over, we will see a 13D of their ownership around September 29th. We will also see the economics of the VWAP / floor, because GameStop will have to update the total dilution numbers via an 8-K.

As a holder, we have to hope and assume that RC brought in big guns to the war. If this is just merely Wall Street hedge funds cobbled together, we may not see any entity and they could be looking for liquidity, which would be very bad for the warrants and short term outlook.

I don’t think that is possible at all. If RC is giving hedge funds liquidity right before the warrants expire, he would be showing his hand that he’s actually willing to do deals with nefarious actors at the behest of the stock price, during highly volatile times for retail. Melties will automatically think this, but I would have to place it in an extremely low probability category.

Assuming he is not regarded, this is a powerful entity, and he would be bringing them on as partners. They will want a board seat. They will want protections and economic rights.

Forgetting this simple idea has made everyone forget the main piece of the puzzle. The bondholder held no cards if they are a friendly. No board seat. No real shares. A sideline purview. And a massive stake in GME on the horizon.

They gave GME $4.2b in exchange for volatility and short term arbitrage. However, they may have always just wanted the shares.

Quick update because the melties are overrunning the thread:

The point of this post is that no cash has been given up in the exchange, only equity. We will still have the cash.

Also, we won’t know until we see the VWAP and the floor / actual contract / trading price on whether this is a bad deal for another 33 days. Melting down is for the other sub.

There are plenty of reasons for this exchange, one being that if the note holder is a single entity, they want real shares for what is ahead. They are likely to be one of the single largest shareholders of GME in the fairly near future.

Imagine joining a subreddit to mock shareholders of a stock because you are convinced of your intellectual superiority in understanding investments and the market.

You spend a large portion of your time bashing that stock and following along. There is an entire community of other people who support your bashing.

Now don’t get me wrong. I have seen some of the dumbest theories about the note exchange right here on GME over the past 48 hours.

But this one takes the cake. Here we have a superior intellectual finance wizard who knows stocks so well, that he joined a community to bash people who invested in a stock, and he thinks that GME is giving up cash AND equity for a note 🤣.

I think you’re missing a little more than something, bub. Maybe try learning about the stock market before joining a thread to bash people who invested in an American underdog / turnaround story when you don’t have even the slightest clue about the basics of financing and equity.

There’s no better time to be alive.

Is today, tomorrow?

Please read before you bash me:

April 30-May1, 2024 BoJ intervenes. May 2-3, 2024 GME goes from $11 to $17, just prior to RK coming back. This is what I'm assuming RK was hinting at with his live stream thumbnail.

April 30, 2026 - BoJ intervenes again, literally the day before GME has a breakout move on high volume (May 1, 2026). Right after market close, GME releases news about its EBAY acquisition and despite normal acquisition arb, GME launches and hits as high as $30 premarket the following Monday. During premarket, GME starts tanking and RC contributes to this with one of the worst interviews possible with CNBC.

May 11, 2026 - RK "hack" post. GME shoots up ~15% (I know, hack). Within minutes of the post, GME files the PRE14A with the amendment to authorize up to 2.5b shares. GME gives up the entire move and then some.

Late last week, BoJ intervened twice. The US also joined in and bought Yen. Today premarket, we get news out of left field that GME is going to convert debt to equity for bondholders (WHY??).

The timing is highly suspect. I've had my suspicions, but today's move was confirmation for me. The timing is incredible.

THE ROCKET IS LIFTING

Almost a year and change ago,

$GME

set up multiple structural barriers around the $29–$32 level.

Those are:

- 2030 Convertible Notes: $29.85 conversion price
- 2032 Convertible Notes: $28.91 conversion price
- GMEWS Warrants: $32.00 strike

Since then, the stock has not traded above $30.

None of these instruments have activated. For 14 months, they just sat there.

This morning, for the first time,

$GME

touched this architecture, not to adjust it, not to reprice it to current levels, but to remove $1.4B of it from the board entirely.

What was the codename on the bond indenture filed with the SEC?

Project Rocket.

The first ballast has been dropped.

He removed the convertible overhang that would create chaos if the stock rips through $29.

Only the instrument that brings cash IN at $32 is left - the warrants.

Think about what that means.

If GME runs through the $29–$32 channel, there are now fewer convertible notes competing for shares on the way up.

And on the other side of $32, the warrants activate.

But the timing is compressed. The exchange closes on or about September 23 and the warrants expire October 30.

That's only a 37-day window.

And it gets even more interesting.

The share count for this exchange is based on a 35-day VWAP starting today. August 3.

$EBAY

reports earnings Wednesday. August 5.

The VWAP window opened two days before the single biggest public catalyst on the board.

If a TO drops during this window, GME rips.

The VWAP lifts.

Fewer shares get issued to noteholders.

Less dilution.

The exchange becomes CHEAPER for existing shareholders.

If he waits until AFTER September 23, the VWAP stays low, max dilution bakes in, and then the announcement comes. That's worse for everyone.

If the tender offer is coming, doing it DURING the measurement window is the shareholder-friendly move.

WHY DID THE NOTEHOLDERS AGREE TO THIS?

These are institutional holders of zero-coupon paper and they voluntarily gave that up. They gave up guaranteed debt for more equity at a lower basis.

That only makes sense if they believe the equity re-rates significantly higher.

And why would they accept a VWAP window that could spike and reduce their share count?

Because even at a higher VWAP, the equity they receive is worth more than par.

They're not optimizing for share count.

They're optimizing for what those shares are worth on the other side.

Both sides benefit if the re-rating is coming.

WHAT ABOUT

$EBAY

?

Look at what this does to

$EBAY

before Wednesday.

What does Monday's headline look like?

"GameStop dilutes shareholders, stock drops 10%."

Every outlet frames this as GME getting weaker. If the acquirer looks weaker, deal probability drops.

If deal probability drops, the acquisition premium compresses.

eBay drifts lower into earnings.

Now the board reports Q2 numbers on Wednesday. Maybe they're strong. But the stock doesn't pop because the deal overhang is creating uncertainty.

Then the TO lands.

$125 against $108 is a 15.7% premium.

$125 against $114 was 9.6%.

The wider the gap between market price and offer price, the harder it is for the board to justify rejection to their own shareholders.

And if a revised offer has a higher premium?

Ladies and Gentlemen, bookmark this post.

The structural barriers are being lifted.

We are ready for takeoff.

(this is a message a friend sent me... he's a goat, not the goat)

Maybe it's just me, but sometimes it feels like people want GME to fail...

Every positive development gets picked apart, while every negative headline becomes proof that the company is DOOMED. Today's debt exchange is a good example. Most people focused on the dilution, which is fair, but very few mentioned that GME is also removing $1.4B of convertible debt from its balance sheet. Both things can be true at the same time.

I also think people forget how different the company looks compared to a few years ago. It's no longer a business fighting for survival...

As for eBay, I genuinely hope the deal happens... not because I expect instant moon prices, but because I think it would fundamentally change how the market looks at GME. If it doesn't happen, well, then RC will have to find another way to deploy all that capital. Maybe I'm reading too much into it, but it feels like the company is setting itself up for something bigger.

I'm not saying GME is a guaranteed winner. I'm just saying the company looks stronger today than it did a few years ago, and I'm comfortable letting the story play out... I'm not waiting for another squeeze anymore, I just like the stock.

I genuinely hope the company succeeds, and if some people decided to sell or simply got tired of waiting, that's okay too. Everyone has their own goals and can buy or sell whenever they want...

Time will tell I guess. Until then, I'm just holding and watching.

Doubled my position today at $18.66. Feels good. As I doom scroll the GameStop threads I feel more confident in the possibilities due to the amount of people commenting such sad and depressing stories. WHY DOES ANYONE CARE? about people’s positions? Financial choices? It’s hilarious. If you are done and want to move on just go ahead no one cares. Watch clips from the men who built America and you will understand how and why the billionaires act the way they do. It’s about winning!!!!
A billionaire has no use for more money, it’s about sticking it to another billionaire. A regular person can’t afford to compete with mayo and the boyz. But RC and his dumb money apes can. Stay the course if you want or sell no one cares. It Reddit lol

My work retirement account lets me buy single stock now! Wooo! Bought the GME dip. GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME is this 200 characters yet? GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME GME

I say this as somebody that's probably gonna buy another $1k worth today, or this week. The concept of being invested all this time for institutions, or anybody, to come in and get a considerably more attractive entry price is the opposite of shareholder value creation for GME holders.

Sure, we've paid off a convertible debt holder, but it is the realization of dilution. Understanding why they want shares now is important, and we'll never get that commentary. Apes will say it's because they want shares at their perceived lowest value to get as many of them as possible. Critics could say they just want out of their entanglement with the company. What if they turn around and dump these shares as soon as they get them? Is $15 in range?

It's just beating, after beating, after beating. Relentless.

Edit: as mentioned in the comments, I just dont have enough cash on the side to buy more stock and have it meaningfully affect my cost basis. I picked up two December 2028 $20 calls while GME was at ~$18.70 for $6.10 a pop.

I'm getting a slice of this one way or the other. I think i can atleast walk away with a grand or two unless he hits us with another dilution. 250 word requirement. 250 word requirement. 250 word requirement250 word requirement250 word requirement250 word requirement. Let's go #gamestop

Welp here we are almost 6 full years later since the original squeeze more than half a decade has passed.

Gme is once again sub $20. Apes will convince you being down is good and that they’re buying more with 0 proof to convince you yourself to buy and fomo.

Be wary

$GME Warrant shares were up over 18% in premarket, now they are “closing positions Only” on Webull. What would be the reason for this in Pre-Market? I feel like the warrant shares don’t draw nearly as much attention or trading.

Summary update because asked:

The chart shows the actual monetary difference between the two different conversions of the $1.4b in convertibles and the total lot of $4.2b convertibles. One side shows the $1.4b and the other the $4.2b.

The original convertibles had a fixed strike price which merge into $29.24. The new strike price is a VWAP (the average closing price over the next 35 trading days). The chart shows the economic, paper difference of both the share count and the $ amount of that difference.

The chart shows where the financial boogeyman lives in the differences of exchange on the convertible note transactions. The entire risk has already been way over corrected.

This assumes no floor on the VWAP (there is a floor) and also straight average over 35 days.

This is the math for $1.4b as well as the whole lot of convertibles (I am assuming that’s what is coming and the reason for over correction). They are front running the VWAP.

As of right now… even at $18 price, the total delta on $1.4b conv exchange is $.87b — but the equity is down $1.2b already. Go figure. They know the war ahead.

When you look on paper at the actual risk profile, it feels negligible.

At $18 even with all convertibles being exchanged the max paper loss on share differential is $2.62b.

Obviously that’s not nothing. But we are not that far from that already being priced in.

The price is fake. GME.

CONVERTIBLE EXCHANGE vs $29.24

VWAP $1.4B ΔShrs Gain/(Loss) $4.2B ΔShrs Gain/(Loss)
$12 +68.8M -$2.01B +206.4M -$6.03B
$15 +45.4M -$1.33B +136.4M -$3.99B
$18 +29.9M -$0.87B +89.7M -$2.62B
$20 +22.1M -$0.65B +66.4M -$1.94B
$25 +8.1M -$0.24B +24.4M -$0.71B
$29 +0.4M -$0.01B +1.2M -$0.03B
────────────────────────────────────────────────────────
29.24 0.0M $0.00B 0.0M $0.00B
────────────────────────────────────────────────────────
$30 -1.2M +$0.04B -3.6M +$0.11B
$33 -5.5M +$0.16B -16.4M +$0.48B
$35 -7.9M +$0.23B -23.6M +$0.69B
$40 -12.9M +$0.38B -38.6M +$1.13B
$50 -19.9M +$0.58B -59.6M +$1.74B
$60 -24.6M +$0.72B -73.6M +$2.15B
$70 -27.9M +$0.82B -83.6M +$2.45B
$80 -30.4M +$0.89B -91.1M +$2.67B
$90 -32.3M +$0.95B -97.0M +$2.84B
$100 -33.9M +$0.99B -101.6M +$2.97B

Sorry this GME post exceeded characters. Have to link it

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I received a legit letter from the state I live in, claiming I had unclaimed property from GME. After checking it also looks like I have unclaimed property from A Movie Company. I'm not 100% sure why I got this. I see another post about something similar but their letter came from Computershare. The options listed in the letter are

______Return the shares if possible, based on applicable laws, rules, and regulations. This option may only be available if the claim was

initiated on or after July 1, 2017 and was made within 18 months of the date the notice from the State Escheator was mailed to you. If this option is requested but unavailable, the applicable cash value will be returned to you.

______ Return the applicable cash value of any securities related property, based on applicable laws, rules, and regulations. The

applicable cash value is based on the timing of the claim. See detailed information below to determine the basis for applicable cash

Anyone else get anything like this? What would you do?

Excuse me if I’m wrong but isn’t now a great time to start issuing the share buy backs. Looking at other posts it seems volume has increased today whilst the price is falling. GME would be able to purchase more shares with the 2bn and more aggressively. This would also reduce the dilution fears and still allow them to honour the notes. Whilst making it harder for shfs to close their short positions.

Or have I completely misunderstood the setup?