Did Ryan Cohen deliberately set the warrants at $32 so they might expire worthless?

Getting to the end of this warrant situation. Just curious what others think here. Is it more beneficial for GameStop to remove 59 million shares of dilution overhang or to collect 1.9 billion in extra cash. If they expire worthless, 59 million shares of dilution gets taken off the table. If they go in the money and everyone exercises, that is extra cash for acquisitions. eBay as our main target though, what the heck does 1.9 billion even buy in that situation. Another almost 4%? I’m not sure how acquisitions of this magnitude work but that cannot be significant. Sorry, no banana memes or regard jokes here, just curious.

16 comments held Reddit says 1 on reddit ↗

u/Superstonk_QV moderator pinned 1 23 hours ago

Why GME? || What is DRS? || Low karma apes feed the bot here || Superstonk Discord || Community Post: *Open Forum* || Superstonk:Now with GIFs - Learn more ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to help us determine if this post deserves a place on r/Superstonk!
u/bussy1847 OP 1 23 hours ago

Warrant discussion. What’s more valuable to GME. 1.9 billion cash vs 59 million shares less of dilution.
u/hatgineer 1 23 hours ago

The terms are changeable.
u/DramaCute8222 1 23 hours ago

Ryan Cohen issued $32 warrants so my guess is he wants them to be deep ITM ($36+) for a minimum of a week for people to exercise for GameStop to get more cash.
u/bussy1847 OP 1 23 hours ago

What about the news cycle of 59 million share dilution being off the table? Is that more valuable for RC? I’m holding a ton of warrants probably till the end since it’s interesting. Just trying to figure out his angle here. 1.9 billion extra cash on the books is great news?
u/Organic-Specific-500 1 23 hours ago

Yes. Or $1.5 billion. Or 1 billion. Pretty much generating any amount of billions in cash is good for a company.
u/Mental-Arrival254 1 23 hours ago

I'd say the cash would be more important. We've already diluted how far? I also have a slight feeling the warrants are a means of catching onto the shenanigans. If more warrants get excersized than issued it's another clear fraud point. What ends up happening who the hell knows tho.
u/Sacrificial_Identity 1 23 hours ago

Lower srike to 28, watch em all freak out!
u/Adventurous-Yak-8929 1 23 hours ago

He's going to exercise early. We all should too.
u/tompie09 1 23 hours ago

Lol hell no. Why would you pay 32 a share right now when share price is 26
u/Nelvalhil 1 23 hours ago

Because 26 goes to the dark pool while 32 goes straight to Jimmy
u/[deleted] 1 23 hours ago

[removed] — already gone when the archive first saw it
u/GansettCan 1 23 hours ago

He’s too smart to. All the shares he just bought in the past 2 weeks were bought at under $32. No reason to waste the money
u/WordSpiritual1928 1 23 hours ago

If this was the reason… then why create them in the first place?
u/DesignerMixture3519 1 23 hours ago

https://preview.redd.it/kvwpruki6uuh1.jpe… $1.9 billion you say… sounds familiar.
u/Nelvalhil 1 23 hours ago

That's 1.09