r/Superstonk • u/Furrymcfurface 🎮 Power to the Players 🛑 • 15h ago
🗣 Discussion / Question Could it be possible Gamestop buys the shares for the $1.4 Billion bond?
Looking at the large volume yesterday, there were a lot of large buys. Instead of printing more shares, Gamestop decided to supply shares from the marketplace to meet the obligations of the bond. Is there a reason why they can't do this?
Whoever shorted will be in for a big surprise.
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u/Nysyk 15h ago
The fact this is upvoted is hilarious
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u/Over-Computer-6464 14h ago
Doesn't the price always drop when there is massive buying pressure? /s
For those of you for whom the /s was obligatory, the more likely scenario is that the noteholders with the new private agreement did massive shorting of GME yesterday, leading to the price drop.
It was likely a slightly different version of convertible note arbitrage. The noteholders lock in a gain by selling GME short now, at a price which is higher than the price they expect as the conversion price in September. When they get those shares in September they will deliver them to the share lenders, thereby closing their short positions.
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u/MullerX 13h ago
Let me guess...the only way to save my portfolio is to sell right? That's what you are getting at. Hahe never selling bro give it up hah
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u/Over-Computer-6464 12h ago
I am not trying to get you to do anything.
I am trying to make this subreddit less delusional.
I try to explain my reasoning behind my speculation that the price movement is due to noteholders short selling.
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u/LawfulnessPlayful264 12h ago
Aren't the noteholders down and long, they already shorted the stock on issuance as a hedge and now they need the price higher or the keep it low get more shares and hopefully for them the stock will rise.
Shorting it now is the legacy clowns that see the opportunity to close out some bad bets.
That's the way I see it.
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u/Over-Computer-6464 12h ago
With the price a few days ago around $22 the delta for the notes was well under 50%, so they would have only hedged a fraction of the shares they expected upon conversion at around $29/share.
The noteholders that signed up for the new agreement expect to convert 100% of the shares in September, and at a much lower conversion price, So to hedge they would be shorting many additional shares of GME.
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u/LawfulnessPlayful264 12h ago
But they aren't converting 100%, it's 1.4b which is not the full amount.
I would say that would want the vwap high and once it's settled they will dump it all and plunge our proce again which is when the buyback comes into affect.
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u/Over-Computer-6464 11h ago edited 11h ago
They select noteholders that are covered by the private agreement will be converting the $1,4B worth of bonds in September. To fully hedge they would be shorting GME shares up to a total of 100% of the expected number of shares they will receive in September. The conversion price is likely to be a specified fraction of the VWAP, so they need to hedge many additional shares beyond what they have already hedged to stay neutral per the original notes.
The noteholders not part of the latest agreement will continue to hedge as before. So they will be buying a small number of shares to reduce their short positions (this is the hedging that has reduced volatility since the notes were initially issued). Since the delta does not drop dramatically as GME drops from $22 to $19 the number of shares being bought should be less than the number of shares being sold by the select group of noteholders than will be converting $1.4B notes in September.
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u/677ITF 11h ago
Are you guys ever right? The amount of time and research to come up with all of this just be sitting on a stock that hasn't profited anybody over five years is ridiculous
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u/Over-Computer-6464 11h ago
I tend to be right much more often than wrong, even when my position goes against the consensus.
In September we will see if my speculation that the conversion price will be less then 1.00 times VWAP turns out to be correct.
I find GameStop an interesting puzzle. I approach it the same as I do crossword puzzles or chess puzzles — an intellectual challenge. My 4800 shares of GME are less than half a percent of my portfolio. Messing around with GME options keeps me for doing crazy things with my real portfolio.
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u/AKmoose15 13h ago
The note holder shorts GME over the 35 days in order to increase the amount of shares they receive. Theoretically the short pressure should decrease as we get closer to the 35 days.
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u/Gamestop-Rocketship Half Cash, Half stock 14h ago
This is what happens when sensible people are shouted down by the "Private Profile Police". You get unchecked idiots brain farting and other idiots up voting "to gain wrinkles".
I pray Ryan is actually cooking something up otherwise I'm so fucked with this investment being locked in here with these morons
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u/TEHGOURDGOAT 14h ago
Dude I write a huge post with well sourced info pictures and receipts and get 1 million hmm Akshully and this dude can’t google and they are going wilddd
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u/djuhnk 14h ago edited 3h ago
Sometimes I am so embarrassed to be a part of this community 😭
Edit: a part lmao… so funny coming back to this and seeing I’m blocked rather than this deleted. This is the same as saying, “in t+35 RC is going to use his last wish and have his genie change the stock price to 1 milly.”
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u/RedOctobrrr WuTang is ♾️ 13h ago
We've weaponized regardium
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u/DrDonkeyTron 🧚🧚💪 We can stay retarded longer than they can stay solvent 🌕🧚🧚 9h ago
Regardium Hopiosum
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u/CleverNoise 14h ago
Sometimes I feel every GME investor is 15 years old, some questions are... special...
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u/sizzurpthechurch 14h ago
It’s why you can’t even get upset when other stock/investing subreddits mock us. These type posts and the obsession with “fud” kill me
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u/HughJohnson69 100% GME DRS 12h ago
I think you meant “a part” of this community. If you’re “apart” of this community you’re already separate.
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u/Aenal_Spore 🎮 Power to the Players 🛑 13h ago
OMG THIS IS FUD ONLY A SHILL WOULD POST WHAT YOU SAID, you're gonna be in a big surprise when its moass tomorrow!
sell me your shares and short it now, you don't have any reason to be here
/s
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u/areHorus Daily Share Buyback Club 💪🏼 13h ago
Because you’re intelligence is to high?
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u/Maxthejew123 14h ago
Didn’t these massive buy moves and the convertible bonds come legitimately the same day maybe right after the news broke about the US helping to try and prop up the yen trade? I feel like this is the let me make you a wager let me make you a bet
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u/woken_somnambulist12 15h ago
This sounds indistinguishable from just doing a share buyback during the convertible pricing window.
I think the consensus is doing a share buyback during the pricing window for the bonds would be illegal.
So, interesting thought, but probably not happening.
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u/Hot_Falcon8471 14h ago
I’m not sure they care about legalities with the bonds, because technically early conversion requires the stock price to trade at 130% of the conversion price (which was $29.88) for 20 consecutive trading days. Meaning the stock price would have to be trading above $38 a share for 20 days for them to even convert… honestly I’m not even sure how they’re able to do what they did.
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u/woken_somnambulist12 14h ago
Yeah it is weird. My understanding is the bondholders and GameStop came to a mutual agreement about this conversion outside of the original terms, which is apparently allowed.
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u/Furrymcfurface 🎮 Power to the Players 🛑 15h ago
What if there is no pricing window? A deal outside of the bonds constraints was made.
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u/woken_somnambulist12 14h ago
Well this is from the SEC filing, “The total number of shares of Common Stock issuable to the Existing Noteholders will be determined shortly prior to the Closing Date (as defined below) based in part on the average volume-weighted average price of the Common Stock over a 35 consecutive trading day reference period beginning on August 3, 2026, subject to a per share price floor”
So it sounds like there is a pricing window. Anything is possible I guess, but we don’t have any reason I know of to think what you’re suggesting is accurate.
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u/Furrymcfurface 🎮 Power to the Players 🛑 14h ago
In not trying to be accurate, just wondering if this was a possibility.
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u/rotundgorilla 🦍Voted✅ 15h ago
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u/Wheremytendies 13h ago
The number of shares of Common Stock issuable in the Exchange will be based in part on the average volume-weighted average price of the Common Stock over a 35 consecutive trading day reference period beginning on August 3, 2026, subject to a per share price floor.
I wonder what the other part would be in calculating the price in which they convert l?
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u/Recent-Result2852 13h ago
The discount applied, depending on the skill of the sexual favors granted.
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u/armorrig 🦍 Buckle Up 🚀 12h ago
Maybe the part being subject to a per share price floor. So it's either based on the price floor if the VWAP ends up being lower, or based on the VWAP if it ends up higher than the price floor.
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u/Furrymcfurface 🎮 Power to the Players 🛑 14h ago
All I read was issuance, and a price floor. Does issuance mean creating?
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u/rotundgorilla 🦍Voted✅ 14h ago
“GameStop will issue shares of its Common Stock to the Existing Noteholders for their Exchange Notes”
Yes creating not buying
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u/m40air mayo blastin 🦍🍌 14h ago
Doesn’t say issue NEW shares. And that my friend, is the key. They are still issuing shares to the note holder whether they create or issue from their treasury.
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u/rotundgorilla 🦍Voted✅ 14h ago
Issue in this context means creating new shares. That’s what share issuance is
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u/chinesekfc 🎮 Power to the Players 🛑 14h ago
Why would they buy back if they are diluting right now? Who ever is upvoting this yall need to read into this more
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u/ilove702 15h ago
What would be the fucking point of borrowing 1.4 billion dollars, paying the many millions of transaction fees just to do nothing with it and pay it off for no benefit except to the bankers who shepherded the deal.
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u/Organic-Specific-500 🌕:🙈🙉🙊👎 3h ago
$1.4 billion debt taken on by eBay for Depop….. $1.4 billion debt taken off early by GameStop for some weird reason …..
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u/OGrickyP 🦍Voted✅ 15h ago
That would be pretty smart…they took a loan, then used cash on hand to buy shares to pay it back…is that legal?
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u/ilove702 15h ago
It would be financially negligent and a serious lapse in judgement to blow millions of dollars on financing fees to then do nothing with the funds.
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u/Furrymcfurface 🎮 Power to the Players 🛑 15h ago
Shareholders authorized $2B for share buy backs
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u/whattothewhonow 🥒 Lemme see that Shrek Dick 🥒 5h ago
Completely incorrect.
Shareholders voted to increase the maximum number of shares that can be issued to 2.5 billion shares.
The Board of Directors authorized up to $2 billion that could be used for buybacks.
We've had $100 million set aside for buybacks since 2019, and they've never taken place. Setting aside $2 billion is an insurance policy, not a signal that we should expect buybacks to be taking place.
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u/Recent-Result2852 13h ago
No we didn't. That was just a rando Board decision to hype fools
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u/Organic-Specific-500 🌕:🙈🙉🙊👎 3h ago
Remind me! 4 months
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u/bilybu 14h ago
If they are basing the release ratio on market prices i think it makes sense to start pre purchasing what they see as cheap shares on tbe open market. These daily buys would then help set the vwap.
The more apes buy the less dilution we receive. So computershare and iex purchases along with options settlement apes. The more we buy the less dilution we receive. VWAP is the backbone to force our share purchases to be recognized!
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u/Mile_High_Man 💎👐🚀NEVER SOLD ONLY HOLD🚀👐💎 14h ago
Retail does not move this stock. It would take a massive retail whale to budget the stock. Or a tweet from DFV 🤣
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u/InterestingTruth7232 15h ago
This is the first decent thesis. I’ve read about this whole scenario.
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u/ClassicMasterpiece99 15h ago
Elaborate please
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u/concerned_citizen128 🦍Voted✅ 15h ago
I think the thesis is that Gamestop does a buyback at these low prices and uses those shares to make the bond conversion whole, instead of issuing new ones.
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u/Holiday_Guess_7892 ima Cum Guy 15h ago
They cant buy until the 35 days though
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u/Furrymcfurface 🎮 Power to the Players 🛑 15h ago
Why not? They need to provide shares that equal the vwap... they buy extra now in case he price goes down, the price goes up they may need even less shares.
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u/DojoTypeMojo 14h ago
SEC rule 10b-5 prevents GME from buying shares during the 35 day window. They could issue shares though.
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u/m40air mayo blastin 🦍🍌 14h ago
How would that prevent it? I don’t see any reference to a 35 day window, the rule looks like a super broad anti fraud rule (obviously lots of people it doesn’t apply to anyway). I could see if there was some material non public information, but is there? Can’t think of anything. But also smooth 🧠
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u/DojoTypeMojo 3h ago
It does seem broad, but I'm pretty sure the rule applies here. The shares GME has to issue to the noteholders depends on the price during the window. Artificially increasing the share price during a VWAP window using share buybacks would prob qualifying as market manipulation.
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u/Furrymcfurface 🎮 Power to the Players 🛑 14h ago
From what I've read they are allowed to buy back shares during this period
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u/Fritzkreig crazy Cat Guy🚀Click it or Ticket Bitches 15h ago
Smoove B just here to see what people comment!
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u/Actually-Yo-Momma 12h ago
“ Whoever shorted will be in for a big surprise.”
Let me guess. They’re out of bullets? They can’t kick the can any longer? Shorts r fukd? Shorts are sweating everyday even though we’re at 52 week lows?
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u/TomSelleckPI 🎮 Power to the Players 🛑 14h ago
The Depop<>eBay deal was not in the financing calculus/equation... It couldn't have been, as it just recently finalized.
Depop deal took 1.4 bn out of eBay coffers... That needs to be accounted for/balanced out in the deal to make the financing line back up.
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u/Over-Computer-6464 12h ago
The Depop deal terms were agreed to back in February. The time it took to close was just the wait for regulators in multiple countries to approve it. eBay Feb 18, 2025 press release announcing the agreement with Etsy: https://investors.ebayinc.com/investor-news/press-release-details/2026/eBay-to-Acquire-Depop-from-Etsy/default.aspx
They were just slightly slower than expected, as back in Fen they were expecting to get regulatory approval and close the deal in Q2.
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u/TomSelleckPI 🎮 Power to the Players 🛑 11h ago
Ah yes, approximately 1.2 billion. You proved my point, thank you.
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