North Texas Investor Uses GameStop Gains to Help Sick Children – NBC 5 Dallas-Fort Worth
Amid the Wall Street drama surrounding GameStop and Robinhood, some investors taking part in the GameStop short sale are using their proceeds to do good deeds for others.
One investor, who wished to remain anonymous, delivered 10 Nintendo switches purchased from GameStop locations around the Dallas-Fort Worth area to Medical City Children’s Hospital Thursday.
The investor said his efforts were made possible by GME gains.
Wall Street has been rattled this week by an organized campaign by small investors to take on large hedge funds by driving up shares of Grapevine-based GameStop and other struggling retailers.
The campaign started on Reddit and other discussion boards as small investors encouraged each other to buy GameStop stock, forcing the bigger players like hedge funds to cover their bets by buying the stock, increasing the price even further.
The anonymous investor who donated the Nintendo Switches said they made “a good amount through r/WallStreetBets on this hilarious GME trade” and felt inspired to give back “in a way that was equally hilarious.”
The investor said their hope is to convince others from the Reddit forum r/WallStreetBets to give back in a similar way and turn the GameStop short sale into a force for good.
Read More: North Texas Investor Uses GameStop Gains to Help Sick Children – NBC 5 Dallas-Fort Worth
- Silver Lake sold its shares in AMC Entertainment for a $113 million profit Thursday, the firm disclosed.
- The private-equity firm converted its debt into equity in AMC after Wednesday’s share-price jump.
- Reddit day traders sent AMC, GameStop, and other stocks soaring this week in a short-squeeze.
- Visit Business Insider’s homepage for more stories.
Silver Lake Partners, a private-equity firm and, until recently, a major investor in AMC Entertainment, disclosed in a regulatory filing Friday that it has sold all of its equity in the company.
Silver Lake dumped its shares for $713 million on Thursday, turning a roughly $113 million profit on its initial investment, according to the filing.
The move came near the peak of AMC’s share-price surge this week, fueled in large part by Reddit day traders who had targeted short-sellers of AMC, GameStop, and other stocks, who have since lost around $19 billion. AMC shares were up as much as 370% this week.
The surge this week triggered $600 million of Silver Lake’s convertible debt notes, allowing the company to exchange its risky debt for the surging equity. The debt was ultimately swapped into stock at a price of $13.51, according to a regulatory filing on Thursday.
In Friday’s filing, Silver Lake said it had sold its equity at an average stock price of $16.05.
Silver Lake originally scooped up the $600 million in AMC debt in 2018 and pumped an additional $100 million loan into the company as the pandemic ravaged its business, and AMC was still warning that it might have to file for bankruptcy, according to The Wall Street Journal.
But a nearly $1 billion cash infusion on Monday and the Reddit-fueled rally this week have helped AMC avoid that road for now.