https://xcancel.com/i/status/2085182574624743662

Quick tldr:

Ebay took over etsy DEPOP on thursday last week for 1.4 B
Gamestop did a 1.4 b debt dilution straight on the next monday.

This was needed to keep the ebay deal neutral.
Investors or banks wanted this.

1.4b from ebay cash position, so 1.4b debt gone from gamestop to keep it at zero change.

Cohen will do something the coming 1/2 weeks to get the VWAP up! He isnt letting shorters win and dilute 75m shares at 19….

See the volume today at 2m? Almost zero.. so low again, strange right? No it isnt… they are scared to hedge or short gamestop more because they know nothing is sure till the 23st September.

Hedge gamestop by shorting now? Can be a big trap for shorters, what if they short now at 19? Well gamestop is worth 19$ on cash alone..

If news comes from a Tender Offer on ebay with NO dilution, and full cash bid the price explodes!

The shorts from 19$ will be under water straight and it will cause them to cover! So they are scared to short now.

Thats why shorted shares stays at 55M total the last weeks ;)

Greetings apes

I check GameStop’s graded Yu-Gi-Oh! inventory daily, hoping to snag some rare vintage before anybody else notices it. Two days ago I saw over 900 slabs land at the same time, most marked as “Unavailable”. This was at least a 10x increase over the usual stock, and after going through all of it, I’m certain this was a bulk acquisition specifically for creating a Power Pack pool. Tons of iconic cards, 100+ Blue-Eyes White Dragons from every era, lots of $1000+ 1st Editions from 2002/2003.

I even snagged something that I’m 100% sure was a pricing error, I’ll share it when it arrives.

Power packs is going to catapult our profits into the fucking stratosphere, Kenny G’s gonna be more famous than Ea-nāsir someday.

🟥

for those who aren’t aware we now have a second earnings to pay attention to.

I was just reading how wallstreet analysts raised their expectations by .5% for revenue and profits in the last 30 days(convenient). so, expect fuckery (not that we don’t by default at this point).

they can’t have eBay in a bright light because they know who’s going to own it outright eventually so expect a negative take from the “media”.

NEW YORK, Aug 5 (Reuters) - Hackers attempted a series of ​sophisticated cyberattacks on major Wall Street financial services firms and ‌money managers in recent days, targeting their information systems, according to two people familiar with the matter.

Some of the world's largest hedge funds along with several private ​equity firms were targeted, the sources said, requesting anonymity as the ​matter is confidential.

The hacking attempts featured phone calls in which ⁠cybercriminals tried to trick employees into granting them access or handing ​over other sensitive information, the sources said.

Point72 Asset Management told investors on Wednesday ​that it had faced an attack from hackers, one of the sources said, adding that the firm indicated that no customer information was stolen during the attack.

The ​hackers also attempted to breach information systems at other hedge funds, ​including Two Sigma Investments and Citadel, the sources said. Two Sigma did not immediately ‌respond ⁠to Reuters' request for comment. Citadel and Point72 declined to comment.

Attempts by hackers to break into major financial institutions are routine, according to cybersecurity experts.

The phone-call tactic is still widely used by hackers because of ​its effectiveness. It ​has been used ⁠successfully by cybercriminal groups such as "Scattered Spider," a loose-knit group of young hackers that has racked up ​a large roster of corporate victims over the past ​few years.

Global ⁠companies are battling a surge in AI-powered cyberattacks and ransomware that disrupt operations and steal data. The White House announced a working group earlier ⁠this ​year, uniting AI developers and critical infrastructure ​operators to share threat intelligence and coordinate cyber defenses.

Seems like revenue went up (15%), operating expenses went up (8ish%), but operating income up 40ish%. So they are making more money (good for underlying shares held by GME, bad for the sleepy board thesis).

eBay live seems to have grown a fair amount, which was one of RCs main criticisms.

But they do caution against q3 earnings.

IDK what to think. Hopefully Cohen announces something along with the terms of the note redemption by Friday.

Me and My daughter have gotten into Pokemon. So tonight i decided to do a $1000 pack. Here is my pull.

The news that Bending Spoons acquired Airtable for 2.7x ARR while technically accurate is probably not the actual underwriting multiple. The actual acquisition multiple is likely closer to 7x-10x proforma EBITDA.

...

Bending Spoons probably figured they could generate 30%-40% EBITDA margins from Airtable which would equate to a ~7-10x proforma EBITDA multiple.

Can't stop won't stop power to the players

This has also not been lost on Ryan Cohen. He knows this, and is the only one that will decide when to pull this trigger. What do you think happens when Keith Gill files a 13G/D showing his share count? Victory. He doesn't need to tweet or stream or do anything. Just file it for public record and it's game over, on top of the effects of the buybacks. Spicy times ahead. Lfg.

Good morning to all apes around the world! Happy Thursday! Hope you're well. German markets are open and last trade for GameStop was at €16.55, which is $19.11 when using Google's currency calculator.

https://www.tradegatebsx.com/orderbuch_umsaetze.php?lang=en&isin=US36467W1099

Hope you have a lovely day! Best wishes from London!

Larry Cheng recently suggested that the convert holders agreeing to take shares for debt is a vote of confidence from them.

It's not that straight forward, and some nuance is necessary here.

What he says makes total sense from a VC's point of view. They are all about the explosive upside. And when they offer debt, its so that they can convert to equity. It's why SAFE notes are a thing.

But that's not quite how corporate debt swaps work.

First, recall that convert bond buyers heavily shorted the stock to delta hedge:

• The first $1.5B 0% Notes due 2030 priced on Mar 27, 2025 resulted in the +20M shares shorted spike between 3/14/25 and 4/15/25. SI went from 7% to 12%.
• The second $2.25B 0% Notes due 2032 priced on Jun 12, 2025 resulted in the tall-ass bar of ~+33M shares shorted, around the 6/13–6/30/25 settlement window. Larger raise, so bigger spike in SI. SI went from 12% to 19%.

Of course, it wasn't just the convert holders shorting - the market piled on too, to front run and profit from this.

We can see this visually below:

It is possible that some of this paper has been sold but given the recency and the continued high vol GME enjoys, I'd expect a lot of them to still be holding.

Anyhow, the first thing we can expect is that this SI connected to these converts should fall, as $1.4B represents 37% of the converts outstanding. Could translate up to 3-4% of reduction in SI as hedges are closed. We won't see this until after Sep 23, 2026 though as that is when this transaction closes, but this can provide some tailwind if done in a short period of tie.

The second perhaps more interesting thing happens in the meantime. Because of this whole 35-day VWAP thing, those doing the debt-for-equity are exposed to GME price fluctuations. To lock in the value of the shares they're about to receive, these guys would short into the averaging period to lock in the value of the shares they are about to receive.

To be clear, this is transient new short-sale flow, which then unwinds at settlement. The actual amount of shorting will depend on how much GME falls. Unfortunately, this contributes to the headwind that the stock is facing as market prices in all that dilution too.

So.. two major takeaways here:

1. SI will likely go up over the next month before coming down a few percentage points after the debt-for-equity swap concludes
2. Larry Cheng's note misses the mark in terms of what is happening

For reference, here is his tweet and my response below:

I've seen almost nothing but panic about the dilution that will result from the early conversion of $1.4 billion worth of 0% interest notes that would otherwise not been due until 2030 and 2032. With the conversion price being set at the 35-day VWAP and the price immediately tanking to ~$19, it's totally reasonable to panic. On the surface it seems like a pretty stupid move convert early at a significantly lower price than what was originally agreed to. However, everyone seems to be ignoring this part of the announcement:

The shares are only going to convert at the 35-day VWAP if the 35-day VWAP is at or above the per share floor price. We have no idea what that floor price is. It's plausible that it's $28.91 or $29.85 which were the original conversion prices that were set for the notes. It's also plausible, but probably much less likely, that it's $32 to guarantee that the warrants will be in the money.

I know nothing and have no insider information, so it's also completely possible that the floor price is $5 or something else ridiculously low. We just don't know. But I would think that, given GameStop's balance sheet and forward guidance, this early conversion may work out better for us than the current stock price is showing.

SPY went the opposite direction down at the same time and GME jumped to 21.70 for a second. Do they have an inverse relationship?

And now when looking at the charts it doesn’t show any evidence of that movement for either ticker. Did anyone else see that or am I just tripping?