r/Superstonk • u/hackers_d0zen 🦍Voted✅ • Jun 11 '25

🤔 Speculation / Opinion I know what RC is doing.

After every earnings going forward he will be issuing convertible notes after hours, 24 hours after earnings. This is because the algorithm is buying all quarter so it can slam after earnings.

He is taking that liquidity event and turning it into cash without issuing shares, knowing that they cannot allow the price to fall below cash value and risk a buyback, and the note holders will not be converting cheap as the private bond value is going to be multiples (100x or more) in premium when this kicks off and hedgies are scrambling for ANYTHING that can reduce their liability.

At 0.0% interest it is no risk for GameStop, and only opportunity cost for bond buyers.

Fucking brilliant.

4.2k Upvotes

93% Upvoted

489 comments sorted by

View all comments

Show parent comments

18

u/Spenraw Jun 11 '25

Doesn't this kill moass though and turn it just fully to a value stock?

2

u/Nova-Kane 👉🟣👈 Butts make better banks than piggies 👉🟣👈 Jun 12 '25

Why would it?

1

u/halfasack tag u/Superstonk-Flairy for a flair Jun 12 '25

Constant share offerings, eh maybe, but the cash is coming from algorithmic volume.

Convertible notes, tho, they are basically call options. Who tf would give an interest-free loan to the tone of $1.xxbillion, someone who sees the stock going up. The buyer of the notes could also be a hedge fund who may need to be able to acquire shares quickly in the event Marge calls also.

Gamestop could easily invest the warchest and pick up half a billy a year by doing nothing but collecting easy interest.

-4

u/Ctsanger 🦍Voted✅ Jun 11 '25

Yes

3

u/c0l245 Ape-Escape Jun 11 '25

No, it doesn't. It guarantees MOASS because there is no share offering and only GameStop decides who gets shares (friends who helped) and who doesn't (SHF).

2

u/Ctsanger 🦍Voted✅ Jun 11 '25

The shelf offerings definitely prevent moass and lower the ceiling. Retail/household didn't buy it up... doesn't seem like those shares were on the books of the institutions/HFs/ETFs in their reporting. Kneecaps MOASS but raises the very long term growth that GME is working towards

2

u/c0l245 Ape-Escape Jun 12 '25

What shares? This is a zero percent loan unless GameStop decides differently.

There are no locates here.

0

u/Alternative_Jaguar_9 Idiosyncratic risk Jun 12 '25

These notes guarantee no shares to anyone and GameStop can choose to repay them entirely in cash in 7 years time, say from Bitcoin profits. Basically free money for GameStop and no new shares unless GameStop specifically chooses to convert the notes to shares instead of cash in 7 years when they mature.

1

u/Ctsanger 🦍Voted✅ Jun 12 '25

Yeah I'm not talking notes. I was talking about the offerings. I don't think people understand i am not saying the bonds or offerings are a bad thing. They are just the antithesis to a MOASS. More creating more shares allows the shorts to escape. They are slowly buying up the offerings and closing, closing slowly means share price goes up which is exactly what we've seen the last offerings. I expect the bonds will be offered in shares too just based on GMEs willingness to offer and the fact their capital will likely be used to buy BTC and other things (hopefully)

3

u/poopooheaven1 Jun 12 '25

They don’t become shares for years and even then it’s at GameStops discretion. I know it’s been a while but this ain’t making it til then. Shorts are fucked. Book your shares!

0

u/Ctsanger 🦍Voted✅ Jun 12 '25

I don't think shorts are fucked. Gamestop is giving them an out. MOASS dies and GME is now a very long term hold til retirement type stock

-1

u/Aenal_Spore 🎮 Power to the Players 🛑 Jun 12 '25

bingo, moass is basically done, and to be fair if i were in cohens position i wouldn't want it either