GameStop has released its latest earnings results, and one unusual data point buried in the SEC Form 10-Q filing caught attention: 4,422 warrants were exercised to buy the stock at $32 per share in the last three months. This exercise price is notably above both the current share price of $21.92 and the quarterly high of $28.10 per share.

Investors who exercised these warrants could have purchased shares cheaper than the $32 exercise price at any point since June 2025. Here’s an excerpt from the SEC filing:

> “During the three months ended November 1, 2025, holders exercised 4,422 Warrants, resulting in the issuance of 4,422 shares of common stock and cash proceeds of $141,504.”

While $141,504 is not a significant amount for a $10 billion company the size of GameStop— which currently holds over $8.8 billion in cash on its balance sheet—this news highlights how some shareholders may be behaving irrationally years after the short squeeze of 2021.

Why anyone would buy GameStop shares with a built-in capital loss is beyond reason. Similarly, why shareholders continue to trust the company’s CEO and board to act in their best interests seems illogical.

That said, the company did report better-than-expected earnings and is not at risk of bankruptcy. However, repeated waves of dilution to raise cash have yet to translate into meaningful gains for investors.

**Disclaimer:**
This article is intended for educational purposes only and should not be considered investment advice. Please take into account your own investment time horizon and risk tolerance, and consult a financial advisor before making any investment decisions.

**Full Disclosure:**
At the time of this article, Shacknews’ primary shareholder, Asif A. Khan, his family members, or his company Virtue LLC held the following positions:
– Long GameStop via GME shares
– Long GameStop via GME call options
https://www.shacknews.com/article/147106/gamestop-gme-warrants-exercised-32-dollars