per Grok

GameStop Corp. (NYSE: GME) announced a special dividend in the form of warrants to its common stock shareholders and convertible noteholders, as detailed in a press release on September 9, 2025. Here are the key details:

Record Date: October 3, 2025. Shareholders and noteholders of record as of this date are eligible.
Distribution Date: On or around October 7, 2025.
Warrant Terms:

Each shareholder receives one warrant for every ten shares of GameStop common stock held, rounded down to the nearest whole warrant (e.g., 520 or 528 shares yield 52 warrants).
Holders of Convertible Senior Notes due 2030 and 2032 receive warrants based on the conversion rate: 3.34970 warrants per $1,000 face amount for 2030 Notes and 3.45872 warrants per $1,000 face amount for 2032 Notes, also rounded down.
Each warrant allows the holder to purchase one share of GameStop common stock at an exercise price of $32.00.
Warrants are exercisable from the Distribution Date until they expire on October 30, 2026.

Trading and Listing: Warrants are expected to be freely tradable and listed on the New York Stock Exchange under the ticker "GME WS."
Purpose and Proceeds:

The warrant distribution is designed to allow shareholders to participate in GameStop’s capital raising without immediate dilution. If all 59 million warrants are exercised, GameStop could raise up to $1.9 billion in gross proceeds.
Proceeds, if raised, will be used for general corporate purposes, including investments consistent with GameStop’s Investment Policy and potential acquisitions.

Shareholder Action: No action is required from shareholders or noteholders to receive the warrants, and no cash or consideration is needed for the distribution.
Tax and Brokerage Considerations:

Tax treatment may vary based on jurisdiction and individual circumstances; shareholders are advised to consult tax professionals.
Some concerns have been raised about brokers potentially substituting shares for warrants, which could indicate issues with share ownership. Shareholders are encouraged to document communications with brokers and report any misconduct to GameStop’s Investor Relations.

Strategic Context:

The warrant dividend is seen as a financial engineering move to engage shareholders and raise capital without immediate cash outflows. It aligns with GameStop’s broader strategy, including its Bitcoin holdings ($528 million as of Q2 2025) and investments in blockchain gaming and NFTs.
However, risks include the stock price not reaching or exceeding the $32 exercise price, which could deter warrant exercises, and volatility in GameStop’s core retail operations.

For further details, including the warrant agreement and FAQs, visit GameStop’s Investor Relations website at LINK
Note: The warrant distribution has sparked discussions among retail investors, particularly on platforms like Reddit, where some speculate it could pressure short sellers if the stock price rises significantly, though this remains speculative and depends on market dynamics. Always verify information with official sources and be cautious of unverified claims.