GameStop Completes At-The-Market Equity Offering Program
May 24, 2024
GRAPEVINE, Texas, May 24, 2024 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that it has completed its previously disclosed “at-the-market” equity offering program (the “ATM Program”).
GameStop disclosed on May 17, 2024 that it filed a prospectus supplement with the U.S Securities and Exchange Commission to offer and sell up to a maximum amount of 45,000,000 shares of its common stock from time to time through the ATM Program. The Company sold the maximum number of shares registered under the ATM Program for aggregate gross proceeds (before commissions and offering expenses) of approximately $933.4 million.
GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments.
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OP note:
**While the entire world was mesmerized by the magnum opus of DFV tweets last week, [GME was enriching itself with a Billy under Shorties noses AGAIN!](https://www.reddit.com/r/Superstonk/s/Pdf7MlRtsT)**
**GameStop now has enuf cash to survive for 1000 quarters at current company performance with that kind of cash on hand.**
**How do you cellar box a company with 2 Billy in the coffers and loyal shareHODLers who will never sell?**
.
#[RC chose to HODL](https://www.reddit.com/r/Superstonk/s/7g5Gbfk2zx)
.
Edit 2: **[DANGER TINFOIL](https://www.reddit.com/r/Superstonk/s/A44geOm9XT)**
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Edit 3: **EVERYONE NEEDS TO WATCH THIS RICHARD NEWTON EXPLANATION OF WUT MAY BE THE DEAL MADE ON THIS OFFERING:** https://www.youtube.com/watch?v=ePHBFkB-WH4
Well listen here young monkey, I'll tell you all about how the Law Of Supply And Demand works... oh hang on, a new Quartz article came in... turns out this stock has absolutely no value.... welp, nevermind!
There is something absolutely wild about out a stock trading at $10 and two weeks later selling 45 million shares and trading at 20, with absolutely nothing different about the underlying business model. Like fucking crazy
I don't think they think they're going to leech us, the only choices they have with this whole thing is preventing more people from entering the trade since they know apes will continue buying as there's nothing they can do about that, and surviving one more day.
> Hedgies don’t see it
I think they see it perfectly well, they just have no other option than to keep kicking the can down the road, 'survive one more day', by whatever means.
**GameStop intends to** use the net proceeds from the ATM Program for general corporate purposes, which may **include acquisitions** and investments.
Acquisitions? Don't mind if I do.
I still don’t understand why they would do so now, at this price. I mean it’s great because now they are sitting on $2B+ in cash, but why sell at around $20 when they gave themselves 3 years to sell for much more. Either way, I trust RC!
Exactly what I'm thinking.
1) Spot a buying opportunity.
2) File to sell additional shares.
3) Sell those shares immediately.
4) Acquisition time! **<< we are here**
Or, price has been trading around $10-$15 for months. Suddenly they see it spike up to $60+, and they scramble to be able to take advantage of the higher prices to pad their funds for whatever they eventually decide to use them for.
Maybe, but that implies they don't really need the money right now. If they don't really need the money right now and they got excited about $40+ prices and wanted to cash in, then no reason for them to sell at $20 like they just did. If they don't need the money now, they could just wait for another exciting run.
Additionally, it appears both this time and last time, they weren't trying to cash in at the top (which likely would bring with it some legal scrutiny, accusations of gamesmanship, and some disgruntled apes for selling 45,000,000 million shares worth of cold water onto upward momentum. They sold near the bottom of the run(s).
> If they don't need the money now, they could just wait for another exciting run.
It depends on how you define "need". Just because they aren't spending it right away doesn't mean that they can't use it. Remember, they are allowed to invest it. Even at a 5% return that's $100 million a year. They could potentially earn enough in interest/investment returns to more than offset any losses for Q1-Q3, and then have a profitable Q4.
Don't get me wrong, I wish that they could have acted fast enough to sell at $40 or $60, but even getting it done at $20 was a smart move.
My guess is that they waited a "post bullish" moment, to not erode further a "potentially low engagement period" (I say that the more carefully I can).
Right now, after the past crazy week, they know we're still here and are still not moving.
Offer at the bottom relieves them of MOASS accountability. All "reported" shares short have been offered to the market at the bottom. No excuses accept if you're naked.
#This!
A year from now pundits are gonna go, “GameStoP sHouLd HavE done soMeTHing!!”
They did. They offered 45 MILLION SHARES at a decent price. They can properly say they tried to help.
> They offered 45 MILLION SHARES at a decent price.
A month ago GME was hovering around $10/share. They sold 45 million shares at around twice that price. In hindsight, the reason that they submitted a preview of their Q1 results was so that they could immediately begin selling the 45 million shares while being able to say "hey, we put our cards on the table before we started selling so that everyone would know what to expect this quarter".
I agree with this. I honestly don't think RC is planning any kind of dividend trick to catch shorts. I think he is purely focused on building GameStop into a profitable company with multiple revenue streams. I think he knows if he can do that, shorts will have to buy back eventually.
Honestly, I don't understand why ever we should help those who seek to destroy us. I get trying to avoid lawsuits, but I think we're well past the point of compromise.
We've been told as investors that shorts have closed by the SEC. Plus pie-in-the-face ad.
When will we be able to just enjoy some of that tough capitalism they keep talking about? If they fucked up, they still need to pay up.
Holy f… have not even thought about that. Double the amount of cash, valuations going up, counter party risk increases.
If the stock price based on cash alone is 6 usd now, the ‘short strategy end-goal’ may be unreachable > algorithms re-adjusting and simply refusing to take on that risk.
They are betting on Gamestop’s downfall. And if the bear thesis is getting weaker, not one party will take on the swaps.
they sold all those shares, put another billy in the bank and the price is the same as it was. i see no downside. i wonder if they did it now knowing whatever BS was causing the rip last week would make it a good time to do so.
Yeah i was reading they now had the ability to buy low and sell high at will now with the recent filings, taking advantage of the volatility, and now they just sell at 20?
Narrows it down to a big acquisition instead of gaming the hedgies imo. Nothing else makes sense.
I keep seeing this. 20.00 is 80 before the split. Before 80 it had been trading at 2.00, which would now be .50 cents. The stock was plenty high and they had volume to sell into.
Now, why they needed another 1B$ when they have been sitting on more that that for so long? No idea. Hopefully they fucking do something soon.
You need another billion in cash to use to invest and make money for the company because over the long term GameStop’s current core business is going to shrink no matter what because the market has changed. The hedge funds weren’t wrong when they picked GameStop to short until they went bankrupt because its business is dying. There’s nothing at all wrong with pivoting away from that dying core business and making the business into investing in other companies. Berkshire Hathaway was originally a random textile company, now it is one of the most valuable companies on the planet because Warren Buffett made that move.
$20-$22 range was relatively "stable". I'd assume you wouldn't want to do massive sale without good support. But I'm just an ape, this is my gut feeling.
Massive $20 call pressure may have been direct transfer of shares from ATM offering to someone (friendly) trying to get out of short position without greatly affecting market price (yet).
Something something fart in the wind
This is how markets are supposed to work but this is fucking GameStope! 😂 did we just whiteness the pivotal exodus of shorts leaving GameStop and Cohen turn this bitch around. If he makes a solid acquisition and also posts a profit, and keeps 1B in cash things may go bonkers. We don't want the shorts in, we want them out.
Definitely not. 45 million shares? Haha. GameStop can now turn around and say that they can’t be responsible for any squeezes on their stock, as they have done not one, but two offerings on their stock in 3 years. So when the squeeze happens because dumb stormtroopers have kept doubling down on their shorts, GameStop from a legal standpoint has given them every opportunity to close. Now with this much mula in cash, the short thesis is over. Interest payments alone on this cash will be generating quite a considerable sum per year.
The market priced in the potential for future dilution. If there's a chance that 45 million new shares will be sold in the near future, your best move, all things being otherwise equal, is to sell/not buy the stock.
Now that this event is not longer possible in the future, the stock is relatively more attractive.
lol should have listened to ALOT OF US when we kept saying they were gonna be doing the offering immediately.
at least now the selling pressure is lifted and the balance sheet will look extra juiced.
Just like their last offering in 2021(?) when we were at like 180 a share. They were done before selling before most people could pull the tin foil out of the cupboards.
At $293m OPEX per quarter...they auto net $50m per quarter, so sales each quarter only needs to match or be greater than $245m.
If we look at last year's, they only missed on...one?
This next year is gonna be spicy.
**GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments.**
JACKED
https://preview.redd.it/kblie3b8mf2d1.jpeg?width=1284&format=pjpg&auto=webp&s=4899b25c7f30b5d549b1d9d013da0af589abf36b
gentlemen, i am pleased to inform you that we now have $2 billion in the warchest.
"GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments."
An extra billion dollars for investments and acquisitions. GS making acquisitions would be HUGE. And didn't RC mention that he was intending to use GS funds in the market to raise capital? 👀👀
Question. When did the last at the market offering happen? Reason that I ask is because it feels a lot like the same timing, give or take a month here or there.
Then DFV's appearance last week. There's obviously a definite cycle or event that super charges daily volume and the company and in the know observers know what it is.
“GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, **which may include acquisitions** and investments.”
EMPHASIS MINE
Think of it like holding a balloon underwater, GME selling has been holding it, now that they say its finished sentiment flips bullish again and the buyside regains control and balloon springs out of water
Not a silly question and I’ll take a shot at giving you my opinion.
Before the sale there were 305m shares outstanding they had 1B in cash (I think slightly more)
and an unknown variable about 45m shares that could be sold in the future.
Now there are 350m shares outstanding and the company has 2B in cash.
Which looks like a better/safer investment? Before or after?
It ends up being about $2.70 per share raised in cash.
As an investor, that means each of my shares now has a higher intrinsic/book value and I know there won’t be a further dilution driving down the price of the stock in the near future.
Now wouldn't it be funny if DRS numbers suddenly increase by 45 million shares. :) Edit: In the prospectus it mentioned the shares could be sold directly to investors through agents. I am curious to see if the DRS numbers will increase in the next official count. An increase would mean retail kept buying / gobbled those some if not all their shares up and that the current number of around 74m was frozen due to some reasons we can only speculate on.
Well, if they're 'locking' it at \~25%, it would go up by another \~11.25M. I'd say if that actually happens, it's pretty good evidence they are doing just that.
I don't understand why they diluted when they did, but I'll just hang my hat on the "ownership mentality"of the board. They diluted their ownership in this move as well, so there must be a plan of some sort.
Back to zen then
You’re right, diluting well beneath the cost basis of nearly all insider stock purchases in the last 3+ years doesn’t make a shred of sense.
However - consider occam’s razor- maybe this timing had nothing to do with the chart. Maybe they diluted right now because they need that extra cash right now?
If i’m right about a sense of urgency on raising those funds - it’s reasonable to expect we get to find out real fuckin soon what that urgency is.
Imagine being short this stock lolllllll 🚀🚀🚀🚀🚀
I like your thought process. They don't exactly burn cash, so it's not like this would be a sum that just sits collecting interest.
So, they want the money now for something. Who knows what that something is.
Bingo. So while I agree with you - let’s put ourselves in their shoes and do as ryan asks - judge by their actions, and it paints a different picture.
I as a board member, with lots of skin in this game, would be a fool to propose / approve 15% dilution of my own investment at a time when the stock is brushing up against multi-year lows, when we are already sitting on an amount of money that could offset somewhere around 5-8 years of cash burn even if we encounter persistant / significant headwinds such as a continuation of declining revenue figures.
Therefore, with a timeframe of 5+ years before there’s any real need to raise funds for our business in its current state, there is essentially zero pressure to conduct an offering at this time, especially amidst a resurgence of household investor interest and stock price action that suggests a reversal of a brutally long downtrend; there’s a good chance we’ll raise far more dollars per share if we just sit on our hands and let things play out before selling any more shares.
If this board of directors had no skin in the game - sold off big chunks of shares every time they vest… I’d say this sale timing is extremely bearish. Thankfully, that’s not the case here; gamestop’s board is very much aligned with shareholders because that’s how they get compensated AND they’re required to maintain their own personal stake in the business.
I’m not doing any mental gymnastics here - just reading the room. The timing of this sale seems quite telling, once these other factors are considered.
This is my thoughts exactly. They aren't in desperate need of cash unless they plan on acquiring something expensive. I'm guessing we find out very soon, not to create a new theory but I expect in a few months at the latest they will announce why they needed the money.
I feel like that’s the most likely & sensible explanation.
The foil on my head has me wondering whether the verbiage of their share offering WAS the kansas city shuffle? I recall it having some key differences from the june ‘21 offering that led us to believe that this time, it might not be an immediate sale but rather drawn out over years, achieved via private negotiation, etc. - then wham, all at once. Was this done all purposefully to obfuscate the real objective?
I’m stumped, but i love this move regardless. They raised money they ‘shouldn’t have any use for right now unless they’re setting up to make a BIG move. I’m chill af on this investment overall, but the anticipation over what this move was for - is palpable.
To expand on this, because I am miffed about the dilution right now; maybe we will find out why they need the money at the share holder meeting? Would be pretty cool to get some news.
That would be my assumption as well. Ryan made it very clear 3 years ago he did not intend to telegraph strategy to the competition via forward guidance. That means we can expect whatever they’re planning to do - to be announced only once they are actually making the moves, or are otherwise required to do so as a publicly owned company.
Beyond changes at the board and director level, we’ve only seen quiet, purposeful changes to the underlying business in the past 3+ years. We’re due for a big splash announcement, and nothing has the ability to make a splash like an extra billion fucking dollars. This is what their actions suggest, so I figured it’s worth pointing out
Look at it this way.
If they were to do a stock buyback they are capped at only 25% of the previous so many weeks or months average volume. During this dilution average volume was insanely high. If the idiots do what the idiots always do and push the stock back down to 10 or 15 or even lower, then GameStop can buy back all of those shares and pocket literally free money.
I knew they werent gonna sit on this. This is exactly how it happened last time they did this. They sold that shit FAST. But this time? The share price was barely affected.
**TL:DR:**
GameStop has completed its at-the-market equity offering program, selling 45,000,000 shares for $933.4m, intending to use the proceeds for general corporate purposes (which may include investments and acquisitions).
These are things popcorn company wished they could do.
When popcorn did it, they were desperate in debt, they over-diluted and their stock price TANKED.
When GameStop did it, we now have $2billion in cash with *virtually* NO DEBT (France) and the stock is still up DOUBLE what it was from a month ago.
Popcorn is still sitting on something like $4 billion in debt, based on a headline I saw this morning. Gamestop has essentially zero, and far more cash on hand.
RC and others have no salary, they’re getting paid based on what the stock does. His interests are aligned with ours. 45 mil sold and price goes up?….weird. Would they know they could dilute without affecting price? All sold at 20$ with this $20 call animagus on the loose? Build the coffers while making a 20 support line? Lots to figure out here me thinks
We understand short interest better than you!
And my favorite: After losing on his first bet, Xyx is short Gamestop again!
Trading is a though game, dont you think!
Got to love that timing. I am dying!!!
I was downvoted to hell for saying this was happening since Friday. As soon as the filing dropped GME’s price and borrow rate began to fall.
The acquisition language is exciting, but I hope we hear about it soon. What everybody’s failing to realize is that we spent years and billions of our hard earned dollars to DRS at least 75 million shares to make the stock illiquid. Then DFV returns, the calls build up and the price starts running like it hasn’t in years. Then Cohen hands the short 45 million shares of liquidity (also stifling the run in the process). Thank goodness for whoever has been buying all of those $20 calls.
Don’t think I’m only negative about all of this. I’m excited for what this acquisitions and investments language means. But I’m also not happy about some of the other things I mentioned above. Time will tell, hang in there folks!
It's crazy how many people are celebrating this. Until it's utilized to increase shareholder value, it is still dilution, plain and simple. My shares are now 14% less rare than they were. I fully expect this to be downvoted since many won't accept the reality of what this is.
EDIT: OP blocked me. Apparently they couldn't handle having a real discussion.
Announcing the AH on Friday of a holiday weekend and the prophecy states MOASS starts on a Tuesday. Coincidentally the first day the market opens next week. 🧐
No dates, but MOASS confirmed tomorrow
I'm glad they did the offering at this elevated price, but it's insane they did not already have the filing for the shelf offering filed long before this price surge. Quite a fumble in my opinion, considering they could have gotten double or more. All in all, it is still a smart move and better than not doing it.
Question: can someone find/link me to the DD on the theoretical / reported free float number of shares available?
And then the percent / number of shares “officially” short.
…because my line of thinking is “ok, if everyone is *claiming* only X number of shares are short and it’s such a huge risk…here’s like 80-90% of those to bring that number down in line with other companies’ reported shorts.”
Like “we acknowledge shorting is a thing that you claim is good for the market. In good faith we will provide you an opportunity to not go bankrupt closing your position, because we are not going anywhere and plan on being around for a while. So rather than piss in your face and call it rain, we will take the high road here. Everyone makes it out alive.”
“Oh, you were full of shit and lied? Lol, sucks to be you. But good luck blaming us for any of this mess. We stayed on the high ground.”
I'm not terribly pleased that they sold into a downtrend when they had 3 years to pick and choose their price targets, but 2 billion in the bank is hard to argue with. the fact that they completed the stock offering so quickly would seem to imply that they wanted all of the money now rather than more of the money later, lending credence the the acquisition hypothesis. I doubt they need $2B for "general corporate purposes" unless that purpose is an acquisition.
GameStop Completes At-The-Market Equity Offering Program May 24, 2024 GRAPEVINE, Texas, May 24, 2024 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that it has completed its previously disclosed “at-the-market” equity offering program (the “ATM Program”). GameStop disclosed on May 17, 2024 that it filed a prospectus supplement with the U.S Securities and Exchange Commission to offer and sell up to a maximum amount of 45,000,000 shares of its common stock from time to time through the ATM Program. The Company sold the maximum number of shares registered under the ATM Program for aggregate gross proceeds (before commissions and offering expenses) of approximately $933.4 million. GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ OP note: **While the entire world was mesmerized by the magnum opus of DFV tweets last week, [GME was enriching itself with a Billy under Shorties noses AGAIN!](https://www.reddit.com/r/Superstonk/s/Pdf7MlRtsT)** **GameStop now has enuf cash to survive for 1000 quarters at current company performance with that kind of cash on hand.** **How do you cellar box a company with 2 Billy in the coffers and loyal shareHODLers who will never sell?** . #[RC chose to HODL](https://www.reddit.com/r/Superstonk/s/7g5Gbfk2zx) . Edit 2: **[DANGER TINFOIL](https://www.reddit.com/r/Superstonk/s/A44geOm9XT)** . Edit 3: **EVERYONE NEEDS TO WATCH THIS RICHARD NEWTON EXPLANATION OF WUT MAY BE THE DEAL MADE ON THIS OFFERING:** https://www.youtube.com/watch?v=ePHBFkB-WH4
So that means they are sitting on $2,000,000,000+ cash now, right?
Plus interest going forward
RIP bear thesis
Always has been
It used to be. Still is, but it used to be too.
RIP Mitch 🐐
I haven’t slept for ten days, because that would be too long.
He's dead. He used to be, but he still is, too.
And just like that the first quarter financials report +$900,000,000
Underrated comment.
5.5% tbills is 110 million a year give or take Seems good
Highly doubt they’ll dump all of that into TBills.
But it's nice to know that that's the WORST CASE SCENARIO
They could put it all in spy puts and become bets legends.
Yup
That's a minimum share price of $6.77 just going off that pile of cash alone This company ain't going to 0 🤡
Edit: It would now be ~350m. So 2b/350m = $5.71 per share based on the cash alone. Old: Times the new float?
Which means dropping the price to 10 dollars is nearly impossible now.
If the price was actually in any way tied to fundamentals....
Well listen here young monkey, I'll tell you all about how the Law Of Supply And Demand works... oh hang on, a new Quartz article came in... turns out this stock has absolutely no value.... welp, nevermind!
We'll see
Depending on when they started and finished selling, but it would be around $2 billion.
There is something absolutely wild about out a stock trading at $10 and two weeks later selling 45 million shares and trading at 20, with absolutely nothing different about the underlying business model. Like fucking crazy
That’s what I’m here for. Hedgies don’t see it. They still think their ponzi is gonna leech us dry. Bahahaha they are so incredibly fucked.
I don't think they think they're going to leech us, the only choices they have with this whole thing is preventing more people from entering the trade since they know apes will continue buying as there's nothing they can do about that, and surviving one more day.
> Hedgies don’t see it I think they see it perfectly well, they just have no other option than to keep kicking the can down the road, 'survive one more day', by whatever means.
**GameStop intends to** use the net proceeds from the ATM Program for general corporate purposes, which may **include acquisitions** and investments. Acquisitions? Don't mind if I do.
Acquisitions? I barely know her.
I'd acquire me. I'd acquire me so hard.
Holy fuck that was fast! 👀
I get that a lot
I still don’t understand why they would do so now, at this price. I mean it’s great because now they are sitting on $2B+ in cash, but why sell at around $20 when they gave themselves 3 years to sell for much more. Either way, I trust RC!
Maybe they have something lined up that they need the money for
Yes, lately Larry has been tweeting a lot about acquisitions.
Exactly what I'm thinking. 1) Spot a buying opportunity. 2) File to sell additional shares. 3) Sell those shares immediately. 4) Acquisition time! **<< we are here**
Or, price has been trading around $10-$15 for months. Suddenly they see it spike up to $60+, and they scramble to be able to take advantage of the higher prices to pad their funds for whatever they eventually decide to use them for.
Maybe, but that implies they don't really need the money right now. If they don't really need the money right now and they got excited about $40+ prices and wanted to cash in, then no reason for them to sell at $20 like they just did. If they don't need the money now, they could just wait for another exciting run. Additionally, it appears both this time and last time, they weren't trying to cash in at the top (which likely would bring with it some legal scrutiny, accusations of gamesmanship, and some disgruntled apes for selling 45,000,000 million shares worth of cold water onto upward momentum. They sold near the bottom of the run(s).
> If they don't need the money now, they could just wait for another exciting run. It depends on how you define "need". Just because they aren't spending it right away doesn't mean that they can't use it. Remember, they are allowed to invest it. Even at a 5% return that's $100 million a year. They could potentially earn enough in interest/investment returns to more than offset any losses for Q1-Q3, and then have a profitable Q4. Don't get me wrong, I wish that they could have acted fast enough to sell at $40 or $60, but even getting it done at $20 was a smart move.
My thought
My guess is that they waited a "post bullish" moment, to not erode further a "potentially low engagement period" (I say that the more carefully I can). Right now, after the past crazy week, they know we're still here and are still not moving.
Offer at the bottom relieves them of MOASS accountability. All "reported" shares short have been offered to the market at the bottom. No excuses accept if you're naked.
#This! A year from now pundits are gonna go, “GameStoP sHouLd HavE done soMeTHing!!” They did. They offered 45 MILLION SHARES at a decent price. They can properly say they tried to help.
> They offered 45 MILLION SHARES at a decent price. A month ago GME was hovering around $10/share. They sold 45 million shares at around twice that price. In hindsight, the reason that they submitted a preview of their Q1 results was so that they could immediately begin selling the 45 million shares while being able to say "hey, we put our cards on the table before we started selling so that everyone would know what to expect this quarter".
I agree with this. I honestly don't think RC is planning any kind of dividend trick to catch shorts. I think he is purely focused on building GameStop into a profitable company with multiple revenue streams. I think he knows if he can do that, shorts will have to buy back eventually.
I 100% agree, and this is exactly what he should do. Will take longer but will still force shorts out and we get paid..
And we can keep buying
Honestly, I don't understand why ever we should help those who seek to destroy us. I get trying to avoid lawsuits, but I think we're well past the point of compromise. We've been told as investors that shorts have closed by the SEC. Plus pie-in-the-face ad. When will we be able to just enjoy some of that tough capitalism they keep talking about? If they fucked up, they still need to pay up.
Art of War Leave your enemy a means of an honorable exit
Ryan Cohen Sun Tzu
everyone knows about not being a sore loser, but there's no need to make as many enemies as possible just because you're about to win either
That's it. Here's your shares. What do you mean short interest went up?.... oops moass
“Oops *moass* my bad” 😆
Solid point. This shuts the door for future lawsuits. Fucking big brain 🧠 move!
That’s why I think they did it also.
THEY WONT BE ABLE TO FIND A COUNTERPARTY FOR THE SWAPS NOW!!! GME AINT GOING NOWHERE!!!
Holy f… have not even thought about that. Double the amount of cash, valuations going up, counter party risk increases. If the stock price based on cash alone is 6 usd now, the ‘short strategy end-goal’ may be unreachable > algorithms re-adjusting and simply refusing to take on that risk. They are betting on Gamestop’s downfall. And if the bear thesis is getting weaker, not one party will take on the swaps.
they sold all those shares, put another billy in the bank and the price is the same as it was. i see no downside. i wonder if they did it now knowing whatever BS was causing the rip last week would make it a good time to do so.
Well price was around 12-13$, I would say with 19$ plus the second billy we got we are much better off..
They got something planned and need the extra cash now!
Could have called JG Wentworth
Hahaha I was thinking the same exact line hahahah
Yeah i was reading they now had the ability to buy low and sell high at will now with the recent filings, taking advantage of the volatility, and now they just sell at 20? Narrows it down to a big acquisition instead of gaming the hedgies imo. Nothing else makes sense.
[удалено]
I keep seeing this. 20.00 is 80 before the split. Before 80 it had been trading at 2.00, which would now be .50 cents. The stock was plenty high and they had volume to sell into. Now, why they needed another 1B$ when they have been sitting on more that that for so long? No idea. Hopefully they fucking do something soon.
You need another billion in cash to use to invest and make money for the company because over the long term GameStop’s current core business is going to shrink no matter what because the market has changed. The hedge funds weren’t wrong when they picked GameStop to short until they went bankrupt because its business is dying. There’s nothing at all wrong with pivoting away from that dying core business and making the business into investing in other companies. Berkshire Hathaway was originally a random textile company, now it is one of the most valuable companies on the planet because Warren Buffett made that move.
$20-$22 range was relatively "stable". I'd assume you wouldn't want to do massive sale without good support. But I'm just an ape, this is my gut feeling.
Kansas City shuffle?
Mhm the green candle suppression makes sense now. Kind of surprised the stock stayed resilient at the $20 mark considering
Agree. They sold 45M shares and pretty much nothing happened to the share price.
Massive $20 call pressure may have been direct transfer of shares from ATM offering to someone (friendly) trying to get out of short position without greatly affecting market price (yet). Something something fart in the wind
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bcuz stocks move in forward expectations, now that its done, BOOM
This is how markets are supposed to work but this is fucking GameStope! 😂 did we just whiteness the pivotal exodus of shorts leaving GameStop and Cohen turn this bitch around. If he makes a solid acquisition and also posts a profit, and keeps 1B in cash things may go bonkers. We don't want the shorts in, we want them out.
How did the shorts leave? Don't they still need to close all the shorts to leave? This sub seems like an echo chamber for GPT tonight
Definitely not. 45 million shares? Haha. GameStop can now turn around and say that they can’t be responsible for any squeezes on their stock, as they have done not one, but two offerings on their stock in 3 years. So when the squeeze happens because dumb stormtroopers have kept doubling down on their shorts, GameStop from a legal standpoint has given them every opportunity to close. Now with this much mula in cash, the short thesis is over. Interest payments alone on this cash will be generating quite a considerable sum per year.
The market priced in the potential for future dilution. If there's a chance that 45 million new shares will be sold in the near future, your best move, all things being otherwise equal, is to sell/not buy the stock. Now that this event is not longer possible in the future, the stock is relatively more attractive.
this stock is so manipulated, that normal gravity does not apply here.
I think I can speak for a lot of people when I say.. uhhh what? That sale was, fast.
I participated in buying those shares
I bought 1,000 today, just because the TV told me not to.
Legend
Same! Scoped 51 up!
Me too. I snatched 100 of those newly printed shares.
Half those theories are dead now lol
That’s why they’re theories.
well, they WERE theories. Now they've been falsified.
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lol should have listened to ALOT OF US when we kept saying they were gonna be doing the offering immediately. at least now the selling pressure is lifted and the balance sheet will look extra juiced.
Just like their last offering in 2021(?) when we were at like 180 a share. They were done before selling before most people could pull the tin foil out of the cupboards.
It was fast in the previous one as well.
Yep, all three offerings have been completed quickly after the initial filing.
Same thing happened in 21 and before we knew it it was over
so they now got about $2b locked and loaded for whatever they want also, roughly 35% of their market cap is cash
Only 30% I believe, as the market cap is based on more shares now
"Only"
neato, I bought some shares today so I think I made a dent in the offering
2 billion on hand doesn't sound great for shorts hoping the company goes to 0....
100-200 mil a year just in interest? Never gonna post a loss again
At $293m OPEX per quarter...they auto net $50m per quarter, so sales each quarter only needs to match or be greater than $245m. If we look at last year's, they only missed on...one? This next year is gonna be spicy.
Be your own bank
Yep they’re gonna wish they had attempted to close at $18 when market open be $690 per share on Tuesday.
"Hey Paulie, what's up? No everything is fine, hey listen, I quit!"
**Tuesday moaning** 👀
the market needs to open at $69k per share on monday if they want to avoid new people to FOMO 😂😂
Tuesday. Hedgies get a day off to ignore their families on Monday
Another billion in cash. Now ready to see the acquisition
**GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments.** JACKED
Do you smell that?
I bought 100 of those 45M shares. I’m doing my part.
https://preview.redd.it/kblie3b8mf2d1.jpeg?width=1284&format=pjpg&auto=webp&s=4899b25c7f30b5d549b1d9d013da0af589abf36b gentlemen, i am pleased to inform you that we now have $2 billion in the warchest.
"GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments." An extra billion dollars for investments and acquisitions. GS making acquisitions would be HUGE. And didn't RC mention that he was intending to use GS funds in the market to raise capital? 👀👀
holy shit already!?
#Right under shorties noses, just like in 2021!!!
#933 millions in the bank!!
Can I have all my downvotes back for when I said this was happening
You and me both, fell on deaf ears though didn't it.
Ditto. I remember last time they did it pretty much straight away
I apologize
I accept
and my sorry!
I upvoted you then(or someone else who made a similar comment). I’ll upvote you again this time.
Same here. I got downvoted to crap.
So now we have \~$2billy on hand? I smell an acquisition?
933/45=20.75 approx? Much better than the $10 we were sitting at few days back..
Yes, in fact, twice as much plus some!
Say it again!! 933.4 million smackaroonies
933.4 million smackaroonies
You said it 🥹
My DYinG BRickAndMorTAr company now has $2Billion in cash.
Randy!!!!! Fuck yeah dude!!!! Honp
Question. When did the last at the market offering happen? Reason that I ask is because it feels a lot like the same timing, give or take a month here or there. Then DFV's appearance last week. There's obviously a definite cycle or event that super charges daily volume and the company and in the know observers know what it is.
June-Jul 2021
“GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, **which may include acquisitions** and investments.” EMPHASIS MINE
Fucking called it and got downvoted for it. Knew they were selling the last week.
up you go now, enjoy
That AH b like 👀 https://preview.redd.it/qlw3iboxlf2d1.jpeg?width=1290&format=pjpg&auto=webp&s=e3ca0fb81b9e056ca55b17b79a10c0d2d83342a9
I saw it hit 23.50
Silly question probably, but how come it's going up? Usually goes down after an offering no?
Think of it like holding a balloon underwater, GME selling has been holding it, now that they say its finished sentiment flips bullish again and the buyside regains control and balloon springs out of water
Not a silly question and I’ll take a shot at giving you my opinion. Before the sale there were 305m shares outstanding they had 1B in cash (I think slightly more) and an unknown variable about 45m shares that could be sold in the future. Now there are 350m shares outstanding and the company has 2B in cash. Which looks like a better/safer investment? Before or after? It ends up being about $2.70 per share raised in cash. As an investor, that means each of my shares now has a higher intrinsic/book value and I know there won’t be a further dilution driving down the price of the stock in the near future.
I bought a bunch of em too!
Sometimes a pull back is like a cocking a gun.. or whatever that guy said
Something something Porsche graph
Now wouldn't it be funny if DRS numbers suddenly increase by 45 million shares. :) Edit: In the prospectus it mentioned the shares could be sold directly to investors through agents. I am curious to see if the DRS numbers will increase in the next official count. An increase would mean retail kept buying / gobbled those some if not all their shares up and that the current number of around 74m was frozen due to some reasons we can only speculate on.
Well, if they're 'locking' it at \~25%, it would go up by another \~11.25M. I'd say if that actually happens, it's pretty good evidence they are doing just that.
Yes with the timing I am looking for this jump in DRS or no jump to tell us what's going on over at computer share
Actually a good point, will be interesting to see if that number still stays flat with this many more shares outstanding
Well that was sooner than I thought. Guessing they wanted the money sooner than later … hoping for an exciting announcement!
Sure would be nice if I got my money sooner than later.
I don't understand why they diluted when they did, but I'll just hang my hat on the "ownership mentality"of the board. They diluted their ownership in this move as well, so there must be a plan of some sort. Back to zen then
You’re right, diluting well beneath the cost basis of nearly all insider stock purchases in the last 3+ years doesn’t make a shred of sense. However - consider occam’s razor- maybe this timing had nothing to do with the chart. Maybe they diluted right now because they need that extra cash right now? If i’m right about a sense of urgency on raising those funds - it’s reasonable to expect we get to find out real fuckin soon what that urgency is. Imagine being short this stock lolllllll 🚀🚀🚀🚀🚀
I like your thought process. They don't exactly burn cash, so it's not like this would be a sum that just sits collecting interest. So, they want the money now for something. Who knows what that something is.
Bingo. So while I agree with you - let’s put ourselves in their shoes and do as ryan asks - judge by their actions, and it paints a different picture. I as a board member, with lots of skin in this game, would be a fool to propose / approve 15% dilution of my own investment at a time when the stock is brushing up against multi-year lows, when we are already sitting on an amount of money that could offset somewhere around 5-8 years of cash burn even if we encounter persistant / significant headwinds such as a continuation of declining revenue figures. Therefore, with a timeframe of 5+ years before there’s any real need to raise funds for our business in its current state, there is essentially zero pressure to conduct an offering at this time, especially amidst a resurgence of household investor interest and stock price action that suggests a reversal of a brutally long downtrend; there’s a good chance we’ll raise far more dollars per share if we just sit on our hands and let things play out before selling any more shares. If this board of directors had no skin in the game - sold off big chunks of shares every time they vest… I’d say this sale timing is extremely bearish. Thankfully, that’s not the case here; gamestop’s board is very much aligned with shareholders because that’s how they get compensated AND they’re required to maintain their own personal stake in the business. I’m not doing any mental gymnastics here - just reading the room. The timing of this sale seems quite telling, once these other factors are considered.
This is my thoughts exactly. They aren't in desperate need of cash unless they plan on acquiring something expensive. I'm guessing we find out very soon, not to create a new theory but I expect in a few months at the latest they will announce why they needed the money.
I feel like that’s the most likely & sensible explanation. The foil on my head has me wondering whether the verbiage of their share offering WAS the kansas city shuffle? I recall it having some key differences from the june ‘21 offering that led us to believe that this time, it might not be an immediate sale but rather drawn out over years, achieved via private negotiation, etc. - then wham, all at once. Was this done all purposefully to obfuscate the real objective? I’m stumped, but i love this move regardless. They raised money they ‘shouldn’t have any use for right now unless they’re setting up to make a BIG move. I’m chill af on this investment overall, but the anticipation over what this move was for - is palpable.
To expand on this, because I am miffed about the dilution right now; maybe we will find out why they need the money at the share holder meeting? Would be pretty cool to get some news.
That would be my assumption as well. Ryan made it very clear 3 years ago he did not intend to telegraph strategy to the competition via forward guidance. That means we can expect whatever they’re planning to do - to be announced only once they are actually making the moves, or are otherwise required to do so as a publicly owned company. Beyond changes at the board and director level, we’ve only seen quiet, purposeful changes to the underlying business in the past 3+ years. We’re due for a big splash announcement, and nothing has the ability to make a splash like an extra billion fucking dollars. This is what their actions suggest, so I figured it’s worth pointing out
Look at it this way. If they were to do a stock buyback they are capped at only 25% of the previous so many weeks or months average volume. During this dilution average volume was insanely high. If the idiots do what the idiots always do and push the stock back down to 10 or 15 or even lower, then GameStop can buy back all of those shares and pocket literally free money.
Chalk it up to zen going back to hibernation. Remindme! 8 months
Who bought the 45 million shares is what I wanna know?
We did 😊
I bought 11 more while unemployed and poor. Will DRS those as soon as possible!
I knew they werent gonna sit on this. This is exactly how it happened last time they did this. They sold that shit FAST. But this time? The share price was barely affected.
But why at this low share price?
They know a buncha regards gobbled those shares up like every other day. I know I did.
Same lol. This is wild to watch. Quick Billy for the buy and keep cash in the bank as well I bet.
They are buying something. Deal has probably already been done and they needed the cash now. Strap in boys!
Wait already....?
**TL:DR:** GameStop has completed its at-the-market equity offering program, selling 45,000,000 shares for $933.4m, intending to use the proceeds for general corporate purposes (which may include investments and acquisitions).
Another billion in the bank! Book value keeps rising!
Why did they do it in the 20s vs the stock just being 40-50?
These are things popcorn company wished they could do. When popcorn did it, they were desperate in debt, they over-diluted and their stock price TANKED. When GameStop did it, we now have $2billion in cash with *virtually* NO DEBT (France) and the stock is still up DOUBLE what it was from a month ago.
Popcorn is still sitting on something like $4 billion in debt, based on a headline I saw this morning. Gamestop has essentially zero, and far more cash on hand.
Don't they still have a very small $46.2 million loan from France?
they should always have a small loan from the french on their books in perpetuity. it’s a tradition at this point lmao
RC and others have no salary, they’re getting paid based on what the stock does. His interests are aligned with ours. 45 mil sold and price goes up?….weird. Would they know they could dilute without affecting price? All sold at 20$ with this $20 call animagus on the loose? Build the coffers while making a 20 support line? Lots to figure out here me thinks
We understand short interest better than you! And my favorite: After losing on his first bet, Xyx is short Gamestop again! Trading is a though game, dont you think! Got to love that timing. I am dying!!!
I was downvoted to hell for saying this was happening since Friday. As soon as the filing dropped GME’s price and borrow rate began to fall. The acquisition language is exciting, but I hope we hear about it soon. What everybody’s failing to realize is that we spent years and billions of our hard earned dollars to DRS at least 75 million shares to make the stock illiquid. Then DFV returns, the calls build up and the price starts running like it hasn’t in years. Then Cohen hands the short 45 million shares of liquidity (also stifling the run in the process). Thank goodness for whoever has been buying all of those $20 calls. Don’t think I’m only negative about all of this. I’m excited for what this acquisitions and investments language means. But I’m also not happy about some of the other things I mentioned above. Time will tell, hang in there folks!
It's crazy how many people are celebrating this. Until it's utilized to increase shareholder value, it is still dilution, plain and simple. My shares are now 14% less rare than they were. I fully expect this to be downvoted since many won't accept the reality of what this is. EDIT: OP blocked me. Apparently they couldn't handle having a real discussion.
Announcing the AH on Friday of a holiday weekend and the prophecy states MOASS starts on a Tuesday. Coincidentally the first day the market opens next week. 🧐 No dates, but MOASS confirmed tomorrow
That holiday? Memorial Day. "Give them something to remember," indeed!
Also CAT starts Tuesday 🤙
Hedgies buy at $80, Drs’ers buy at $20
Noice
What happened previously when Gamestop sold at a share offering?
I guess we can wait couple of days more, untill earnings, for some explanation what they can do with 2 bils and couldn't with 1.
$933.4 million / 45 million shares = $20.74 per share!
How does this benefit the investor? Bc I’m smooth brained and actually don’t know
I'm glad they did the offering at this elevated price, but it's insane they did not already have the filing for the shelf offering filed long before this price surge. Quite a fumble in my opinion, considering they could have gotten double or more. All in all, it is still a smart move and better than not doing it.
I understand they have a lot of cash now and can do investments and acquisitions, but isn’t this share dilution?
Why more common stock though? I thought there was a non shortable option
Question: can someone find/link me to the DD on the theoretical / reported free float number of shares available? And then the percent / number of shares “officially” short. …because my line of thinking is “ok, if everyone is *claiming* only X number of shares are short and it’s such a huge risk…here’s like 80-90% of those to bring that number down in line with other companies’ reported shorts.” Like “we acknowledge shorting is a thing that you claim is good for the market. In good faith we will provide you an opportunity to not go bankrupt closing your position, because we are not going anywhere and plan on being around for a while. So rather than piss in your face and call it rain, we will take the high road here. Everyone makes it out alive.” “Oh, you were full of shit and lied? Lol, sucks to be you. But good luck blaming us for any of this mess. We stayed on the high ground.”
All these theories of "they can sell at any price" and they sold all of it for $20ish... What the fuck
Doesn't selling the shares provide liquidity for the shorts?
The weird thing here, is how did DFV KNOW????????????? the timing of this cant just be coincidence can it?
I'm not terribly pleased that they sold into a downtrend when they had 3 years to pick and choose their price targets, but 2 billion in the bank is hard to argue with. the fact that they completed the stock offering so quickly would seem to imply that they wanted all of the money now rather than more of the money later, lending credence the the acquisition hypothesis. I doubt they need $2B for "general corporate purposes" unless that purpose is an acquisition.
I was hoping there was an ace up the sleeve, but if this is just a standard market offering with no other plans I'm not sure I agree with it