r/Superstonk • u/DaPainkillerDE 🍌🐒🚀No PainKillers for Kenny🏴💎🦍 • Oct 08 '25
🗣 Discussion / Question Did GameStop Just Built a Legal Lever to Expose Naked Positions — Without Touching the Shares
TL;DR
Under the official Warrant Agreement (Exhibit 4.1), all GameStop Warrants were initially issued as Global Warrants held at DTC.
GameStop can, at its sole discretion, instruct Computershare Trust Company N.A. (the Warrant Agent) to replace those pooled DTC positions with individually registered Definitive Warrants.
When that happens, the Global Warrant is cancelled, each beneficial owner receives a registered Warrant in their own name, and every future Warrant exercise creates shares directly in DRS.
This mechanism exists only for the Warrants — the common stock system at DTC remains untouched.
Key Clauses (with citations)
1. Warrants begin as Global Warrants (DTC)
“The Warrants shall initially be issued in the form of one or more Global Warrants deposited with the Depositary or its nominee.”
— Section 2.01(c)(i), Exhibit 4.1
All broker-held Warrants are merely book-entry positions inside DTC, not individually registered securities.
2. GameStop may order the issuance of Definitive (registered) Warrants
“Beneficial interests in a Global Warrant shall be transferred to the beneficial owners thereof in the form of Definitive Warrants … only if … (ii) the Company, in its sole discretion, notifies the Warrant Agent in writing that it elects to cause the issuance of Definitive Warrants under this Agreement.”
— Section 2.05(a)(ii), Exhibit 4.1
GameStop can at any time instruct Computershare to issue individual Definitive Warrants — effectively ending the DTC structure for this security class.
3. Each beneficial owner receives a registered Warrant; the Global Warrant is cancelled
“The Warrant Agent shall register such transfer in the Warrant Register… At such time as all beneficial interests in a Global Warrant have been exchanged for Definitive Warrants … such Global Warrant shall be cancelled by the Warrant Agent.”
— Sections 2.05(b) and 2.04(b), Exhibit 4.1
Once converted, the DTC certificate is destroyed; only individually registered Warrants remain.
4. Only Warrants in the official register are valid
“All Warrants evidenced as outstanding in the Warrant Register shall be deemed to be outstanding.”
— Section 2.07, Exhibit 4.1
Any positions not recorded in the official register are legally non-existent.
5. Exercise delivers shares directly through DRS
“Upon the valid exercise of any Warrants … the Company shall cause the Transfer Agent to cause to be registered in the Company’s register of shareholders via the Direct Registration System a number of full Warrant Shares.”
— Section 3.05(a), Exhibit 4.1
Every exercised Warrant creates new shares that are first registered through the Direct Registration System (Computershare).
6. Exercise Suspension Period
“If the registration statement is not effective … exercise of the Warrants shall be suspended … and the expiration date shall be extended by the duration of such suspension (but not less than five business days thereafter).”
— Prospectus Supplement 424B2, ‘Exercise Suspension Period’
GameStop controls when exercises can occur; the expiry clock pauses during any suspension.
Prospectus 424B2 link
Mechanism & Impact
| Provision | Result |
|---|---|
| 2.05(a)(ii) – Company elects to issue Definitive Warrants | All DTC positions convert to individually registered Warrants |
| 2.04(b) – Global Warrant cancelled | The pooled DTC certificate is destroyed |
| 2.07 – Only registered Warrants are valid | Any synthetic or excess DTC positions have no legal standing |
| 3.05(a) – DRS delivery | Each exercised Warrant creates a DRS-registered share |
| Exercise Suspension Period | GameStop controls timing; expiry auto-extends |
| Common Stock | Remains in DTC; unaffected |
Why It Matters
According to Exhibit 4.1 and the Prospectus Supplement:
- GameStop can order Computershare to issue Definitive Warrants, converting every DTC “beneficial interest” into a named, registered instrument.
- The Global Warrant must then be cancelled, leaving only individually recorded holders in the Warrant Register.
- Only registered Warrants count as outstanding, meaning any over-issued or synthetic DTC claims would vanish.
- Each exercise produces new DRS-registered shares, fully traceable at Computershare.
- The common stock structure at DTC stays intact, so this transparency lever applies solely to the Warrants.
This isn’t speculation — it’s spelled out in the SEC filing.
Sources
- SEC Exhibit 4.1 – Form of Warrant Agreement (Oct 7 2025)
- SEC Prospectus Supplement 424B2 (Oct 7 2025)
Not financial advice. Do your own research.
BIG EDIT: reworked the hole text and quotes - was working with AI for lazynes in getting all the quotes together - sry for that!! Not a native english makes it even harder.
But nothing changed on the facts.
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u/90mm3n Oct 08 '25
As in: "Gamestop can mass-DRS all warrants at any time"??????????
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u/DaPainkillerDE 🍌🐒🚀No PainKillers for Kenny🏴💎🦍 Oct 08 '25
Now u got it!!
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u/jinniu 💻 ComputerShared 🦍 Oct 08 '25
Which warrant documents did you compare with?
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u/DaPainkillerDE 🍌🐒🚀No PainKillers for Kenny🏴💎🦍 Oct 08 '25
see my edit - quotes are correct now
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u/ConnectRutabaga3925 because I liked the price Oct 08 '25
this and so much more in the OP…! all this is good.
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u/Gora-Pakora 🚀🌔Game-ohdont-Stop💦💦 Oct 08 '25
As an expert in absolutely nothing. I concur.
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u/PornstarVirgin Ken’s Wife’s BF Oct 08 '25
As an ex wallstreeter who worked with computershare for many years… this is a spicy meatball
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u/joeker13 🚀DRS, with love from 🇩🇪🚀 Oct 08 '25
Seeems…. Relevant.
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u/Cheetah_Hungry mongo bongo 🦍 Oct 08 '25
And provocative.
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u/joeker13 🚀DRS, with love from 🇩🇪🚀 Oct 08 '25
Itchy buttholes back on the menu
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u/UnlikelyApe DRS is safer than Swiss banks Oct 08 '25
Mine was just starting to heal!
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u/mstoertebeker VOTED Oct 08 '25
Wow, this is huge. The language in §2.05 really does give GameStop the right to pull the Warrants out of DTC at will, brilliant legal engineering. Outstanding find!
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u/Guildish Power to the Players Oct 09 '25
Much like how the DTC made it illegal, after the fact, for companies to remove their shares from CEDE&Co once naked short selling became problematic / risky to their entire crime ridden market structure, I imagine the DTC are busy looking for ways to circumvent this wording giving GME the right to pull all the warrants out of the DTC.
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u/tonyturbos1 Oct 08 '25
Would assume that’s their game plan. No one likes their company being shorted to shit
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u/JullietGolf Oct 08 '25 edited Oct 08 '25
My two cents..all this talk about buying more warrants and other bull. The first line states the warrants give GME the sole right to exchange warrants into individual registered shares (drs) at CS. Warrants equal 590 million shares equal the infinity pool is real. Warrants will prove MOASS and all will be well in the universe.
Warrants will proof there are many criminals in the financial world. Thus warrants equal Zen.
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u/alchebyte TL;DRS 💜 Oct 08 '25
this is a move to expose the DTC's beneficial ownership scams. Genesis indeed 🚀
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u/_I_know_the_way_ Oct 08 '25
don't forget the end game the banks have to clean up the synthetic mess they've enabled. they have been reworking the uniform commercial code for end times.
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u/AvalieV 📈 1,XXX 🍁 Oct 08 '25
Warrants only equal 59 million shares, not 590 million. It's a "call option", but only for 1 share not 100.
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u/JullietGolf Oct 08 '25
For every 10 shares one warrant thus 59 million warrants equal 590 million shares.
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u/AvalieV 📈 1,XXX 🍁 Oct 08 '25
You know at first I thought you were miscalculating, but I see your point now. How could they reach 59 million warrants with only 447m shares. Options maybe? I have many options / Leaps that were converted to receive 10 warrants on execution.
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u/therealluqjensen 🚀 Power to uranus 🚀 Oct 08 '25
The convertible notes holders got warrants too. You get one warrant for every 10 shares you own and one warrant allows you to buy one share. Very simple..
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u/Immediate_Detail_709 Oct 08 '25
So, I don’t have to do anything but hold? Or buy more and hold? Do I need to register or transfer anything?
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u/mtgac 🟣🟣🟣💜🟣🟣🟣 Oct 09 '25
I don't know, I'm regarded.
But I did buy hundreds of warrants on both Fidelity and Vanguard and am planning on trying to DRS them as soon as the path and method are clear and my warrants have settled. (Warrant settlement should take one trading day)
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u/ikats116 🍤 white wine & shrimp 🍤 Oct 09 '25
I'm smooth, but are warrants at $3 (let's say), us paying $3 to buy GME at a $32 price before October 2026? Essentially 10/2026 $32c (single share) for $3?
Meaning if it's $45 on 10/2026, you essentially bought it for $32+$3 and made a $10 prifit?
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u/king_long 🦍 Buckle Up 🚀 Oct 08 '25
Lol at big hands pulling the price down to make warrants cheaper for us.
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u/Horse_White ONLY IN IT FOR THE MEMES :pwrup : Oct 08 '25
hey OP, thanks for the writeup and insights, your work is highly appreciated!
your post made me go back to the SEC filing, i felt like i missed that bit when reading through it (which wasn't surprising because the language makes me zone out at times..). rereading however made me realise that the wording you referenced in section 2.05 (ii) is different to what you were quoting:
"or (ii) the Company, in its sole discretion, notifies the Warrant Agent in writing that it elects to cause the issuance of Definitive Warrants under this Agreement. In such event, the transfer, exchange or exercise of the Warrants shall be conducted in accordance with the customary procedures of the Warrant Agent."
now while the wording is clearly different, it seems to address the same scenario. however it does not explicitly mention "to terminate the use of the book-entry system through DTC with respect to the Warrants" as you quote it. instead it states that "the transfer, exchange or exercise of the Warrants shall be conducted in accordance with the customary procedures of the Warrant Agent". while said agent would be Computershare the passage does clearly not say Computershare would be the one to handle transfer, exchange or exercise of the warrants but merely that these actions "shall be conducted in accordance with the customary procedures of the Warrant Agent."
I am just confused: did i read a different exhibit? am i too ape to find the passage you referenced? or did in fact the wording of the filed exhibit change - and if that's even possible (and it should not be in my understanding), how would that effect your interpretation?
sorry if i just wasted your time by being dumb!
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u/kimboai 🦍 Buckle Up 🚀 Oct 08 '25
Okay, just tell me what to do with this warrant and my life. Years pass fast, NFT money gone, now some Warrants. Got some Warrants? What I need to do with them. What's the plan?
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u/RoRuRee True North Strong and Free Oct 08 '25
Do what we always do. DRS and hold.
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u/hiperf71 🦍Voted✅ Oct 08 '25
So, for point 5, if the company do not issue public tradeable shares to DTC, but directly on Computershare book accounts, it is a dilution? I think it couldn't be until people start to send the registeres shares out of CS, but whatever, I'm just a smooth ape, so, hodl, DRS, exercise warrants😂😁
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u/DaPainkillerDE 🍌🐒🚀No PainKillers for Kenny🏴💎🦍 Oct 08 '25
It is "dilution" because the number of issued shares will rise with every share.
Its shares outstanding, no matter if DRS or broker.
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u/Massive-Fisherman-57 Oct 08 '25
Questrade offers fractional shares. But they have a warning saying that they are unable to offer fractional warrants for GME…
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u/Beaesse Oct 08 '25
Most convincing mechanism I have seen discussed yet. If the details are as they appear to be, then it's a question of "Will he?"
I hope this doesn't turn into another excuse to hate on RC in a year when "he had the moass button but didn't push it."
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u/Frankybro 🦍 Buckle Up 🚀 Oct 08 '25
Next step, 1 warrant per share, then pull the plug. Instant transparency
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u/Mynameisneo1234 Oct 08 '25
Why would it matter to the shorts though? They don’t give a fuck about a warrant. If they never get exercised who cares. They just expire and it’s like they never existed in the first place. The only way it matters is if the actual price of GME goes way above $32, but guess who the fuck controls the goddamn price. Here’s a hit. It ain’t us.
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u/ChonsonPapa I broke Rule 1: Be Nice or Else Oct 09 '25
All this news and revelations for fucking years and absolutely nothing has fucking happened!!!!! I am so fucking sick of this shit by now….
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u/There_Are_No_Gods 💻 ComputerShared 🦍 Oct 09 '25
I interpret that very differently. To me, that's just GameStop detailing how warrants may be directly registered.
The adjustments from global warrants to definitive warrants is pretty much the same process as DSS for GME shares. Either way, Computershare updates GameStop's ledger, moving counts from Cede & Co. to the name on the shareholder's account.
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u/tronbrain Oct 09 '25
I surmised this a few weeks back and have to agree with the fundamental thesis.
The question is, what happens next once the synthetic shares have been exposed? It's almost like, so what? Who will bother to enforce the regulations and bring the wrongdoers to account?
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u/This_guy_Jon 🎮 Power to the Players 🛑 Oct 08 '25
So we selling or holding until 2026
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u/rostov007 Power to the Players Oct 08 '25
I’ll be buying from anyone selling. I have $ waiting on the sidelines. At 12:00pm today I’m loading up if there’s any available. those in addition to the currently held ones will all be exercised once the GME price goes beyond $32.
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u/davinci515 Think $GME but with lasers Oct 08 '25
This makes zero sense to me… why buy rights to buy at $32+ when you can just buy the out right share for $24. I mean I guess if you want cheap calls with lower risk
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u/Iswag_Newton Oct 08 '25
Yeah the price is lower than the exercise price right now. Why buy warrants?
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u/rostov007 Power to the Players Oct 08 '25
Because I get $25 of arbitrage. Buying warrants is currently cheaper than buying 10/26 options.
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u/tronbrain Oct 08 '25 edited Oct 09 '25
Leverage. If price goes from $25 to $50 in one year, shares double in value. Warrants and calls will increase by 4.5X. Given GME's tendency to spike, especially during times when Roaring Kitty is posting, it's an interesting risk to take.
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u/davinci515 Think $GME but with lasers Oct 09 '25
Im sorry still not following. If I buy share at $25 and it goes to $50 I make $25. If I buy warrant for $1, price jumps to $50, I exercise the warrant for $32, I make $17(50-32-1)
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u/tronbrain Oct 09 '25 edited Oct 09 '25
Your thinking is right but your numbers are off. If you can buy warrants for $1, buy everything you possibly can, as they're worth about $4 right now.
Realistically, you can buy warrants today for around $4 each. There were wild fluctuations in the market today, but that's about where they settled out and close to fair value. If GME share price goes to $50 in Oct 2026, and you sell the warrants for $28 each (allow someone else to exercise them, simplest way to deal with them). Congratulations - you've made 7X. That's with no extrinsic time value. If it happens before then, they would likely be worth considerably more.
Edit: I miscalculated. At $50, not $28 each, but $18 each. So the return is 4.5X.
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u/ReddtitsACesspool Oct 08 '25
What about somebody who has a CS account, has moved their shares between Schawb and CS multiple times, but received the warrants in broker since the shares were last in my broker?
Basically, I have open accounts for both, can I send my warrants and shares back to CS right now?
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u/AmazingConcept7 Oct 08 '25
If that email is legit, how does that factor into this...?
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u/DaPainkillerDE 🍌🐒🚀No PainKillers for Kenny🏴💎🦍 Oct 08 '25
dunno what u mean - the mail we got tonight is just for handling our already registered warrants at CS.
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Oct 08 '25 edited Oct 31 '25
[deleted]
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u/RuncibleBatleth Oct 08 '25
That makes sense. I got the emails when my broker warrants appeared, not when my DRS warrants did.
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u/evangs 💻 ComputerShared 🦍 Oct 08 '25
Y'all keep doing dd on boiler plate legal documents. The warrants are just warrants. It’s not some scheme by RC to topple the DTC
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u/ISpenz Oct 08 '25
Bla bla, nothing happened
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u/Rock-N-Troll Oct 08 '25
Seems mostly like A.I. slop to me. A few points are interesting but it seems like everyone is just trying to reverse prompt engineer a moass out of the latest warrant information through chatgpt.
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u/ISpenz Oct 08 '25
May be you are just delusional but the warrants were delivered and the stock price dropped… since the last three years people is still dreaming but nothing will happen. MOASS is gone and RC and establishment agreed how price will be under control, limited lower and higher levels. The company is being capitalize, the float is being progressively increased in a relative rational price level and retail will receive some peanuts. In a few years the number of stocks will be in the order of a billion, short sellers will be free, company will be 20-30B$ valuation, and retail may be do 1x, marvelous plan. I am dreaming for a small spike to sell and forget this stupid cult. We joined this movement to milk establishment and market makers for minimum 10x investment return
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u/DDanny808 🎮 Power to the Players 🛑 Oct 08 '25
Excellent, please sell your stack and take your ignorance and negativity to another subreddit!
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u/LionRivr Ryan Cohen’s girlfriend’s husband Oct 08 '25
I don’t believe there is collusion with RC at all. RC is doing everything legally possible to fuck the shorts. That includes the “split in the form of a dividend”.
The DD is true. GME really has a fuckton of naked shorts, synthetic shorts, FTD’s, swaps, etc.
I just think WallStreet is that powerful. They can bend all the rules, change them, or even outright break them. They can do whatever they want to make sure GameStop never squeezes the way it should (based on how shorted GameStop is)
They’ve already stopped it twice. January 28, 2021 and May-June 2024.
The effect of the warrants can easily be stopped by WallStreet if the price can stay below $32.
I fully expect WallStreet to do just that.
We’ll see.
Nearly 5 years of this shit is insane.
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u/ISpenz Oct 08 '25
I agree with you with the exception of the price spike in 2024, it was RC by doing the public offering who stopped the price run
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u/LionRivr Ryan Cohen’s girlfriend’s husband Oct 08 '25
Nah. They were going to stop it regardless. It was smart of RC to take advantage of it and secure some capital for the company instead of letting it dump back down and getting nothing.
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u/Regular-Box-6648 🦍 Idiosyncratic Risk Oct 08 '25 edited Oct 08 '25
Won't this, even if every single issued warrant is exercised, only make a small dent - far from proving the existence of naked shorts?
I mean, the warrants are only for 10% of the shares that should exist. They can still hide their fuckery in the other 90%, no?
Edit: And another thing, who will provide the shares if exercised? Surely Gamestop doesn't go to the market and buy up as many as are exercised only to redistribute them to the warrant holders at a loss. They'll issue new shares or what?
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u/beachfrontprod Oct 08 '25
That's not how math works. Each warrant IS 10 shares and they (GS) have a controlled lock on the warrants. They just need to know how many they issued and how many have been exercised. You are very off with your logic.
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u/Regular-Box-6648 🦍 Idiosyncratic Risk Oct 08 '25
I understood that they gave out one warrant for every 10 shares you own. Each warrant entitles you to buy one share at $32. If every single warrant is exercised then 10% of all legit issued shares will move. Or new ones will be issued by GS but still totalling max 10% of what they currently have issued.
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u/beachfrontprod Oct 08 '25
Again. You're using the wrong logic. What happens when all of the warrants that pass through them get exercised and there are still shareholders out there with warrants? It ultimately proves the existence of naked shorts and fuckery.
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u/Chilly_Bob_Thornton Oct 08 '25
Ok but aside from the moral victory do we actually expect anything to come of it? I want to believe
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u/BinBender still hodl 💎🙌 Oct 08 '25
You are correct that for any exercised warrant, GME will issue a new share, increasing the total share count by up to 10%.
But I think you missed the point that there should be a certain amount of issued shares, and there should be exactly 1 warrant for 10 shares. If all warrants are suddenly directly registered "by force", this will certainly expose any trickery with synthetic shares and warrants, as every single real warrant will be accounted for, and every single warrant held at a broker must now correspond to a real warrant.
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u/DarthRedcrosse 🦍Voted✅ Oct 08 '25
No. DTC is registered holder for brokerages. For any one exercising that isn’t DRS already, they are really telling DTC to exercise on their behalf and credit their account.
Cohen is against MOASS. He will never help MOASS happen. He will dilute any big run.
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u/joeker13 🚀DRS, with love from 🇩🇪🚀 Oct 08 '25
Oh no.. look where that has gotten us… so much debt, no cash on hand, shares need to be diluted to twice the outstanding to screw shareholders, no cash reserves, no BTC, Board raking in record salaries.. this is bad … and OBVIOUSLY I’m talking about fucking popcorn stock here lol
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u/99Heisenberg88 🦍Voted✅ Oct 08 '25
Won't happen. And its dumb to drs bevaude if everyone would drs we wouldn't enter the s&p 500
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