A look at GME book value per share over the past 8 years.

Heading in to 2020, GameStop was losing equity value while maintaining debt, and the stock price was so low that the price-to-book ratio was below 1.  This is around when DFV and RC originally saw that GME was undervalued and bought in.

In 2021, at RC's direction, GameStop did 2 ATMs and raised about $1.7 billion, significantly increasing the equity value of the stock.

In 2022, GME did a 4 for 1 stock split, cutting the book value per share to a quarter of what it was prior.

There it sat until 2024 when GameStop did more ATMs, raising about $3.5 billion at an average of $25 per share sold.

GameStop used that cash from the 2024 raises to generate interest income and buy time while the company continued to improve operations.

From there, the equity of the company has increased every quarter, and is now over $13 per share as of Q1 2026.

This is the minimum value of a share of GME in equity alone that puts aside any valuation of the operational profitability of the company.

Any forthcoming dilution above this value of $13.03 per share will **further increase** the book value per share.

In exchange for this forthcoming dilution, GameStop will be gaining $1.4 billion in equity, bringing the total stockholders' equity to approximately $7.2 billion

Thus, when the vwap window for the convertible notes ends in September, and the dilution / conversion is complete, at some price maybe around $19, or $18, or even if it went lower, **any price above an average of $13.03 will increase the book value per share.**

For example:



|Average conversion price|new shares issued|New share count|new Book Value per Share|
|:-|:-|:-|:-|
|$20|70 million|517 million|$13.93|
|$19|73.7 million|521 million|$13.82|
|$18|77.8 million|525 million|$13.71|
|$17|82.4 million|529 million|$13.61|
|$16|87.5 million|535 million|$13.46|
|$15|93.3 million|540 million|$13.33|
|$14|100 million|547 million|$13.16|
|$13|107.7 million|555 million|$12.97|



Yes, nobody enjoys the dilution aspect of this.  But it is a trade off, not without purpose.  Ryan Cohen isn't diluting himself for no gain.  The minimum upside is the increase to book value per share, a basic theoretical floor value of a share of GME.

Likely, there is a reason for this conversion not yet known.  Bloomberg is trying to paint the picture that GameStop is giving up on their attempt for eBay, but after Ryan Cohen has repeatedly emphasized that GameStop is coming for eBay one way or another, this conversion is likely related to a purposeful reposition in that objective.

We will see more clearly the outcome in September.

GME Book Value per Share: $13 as of Q1 2026, increased by Q2