Video game retailer and well-known meme stock GameStop (GME) is planning to issue what it calls a “special dividend” next week.
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Specifically, the company is preparing to distribute warrants to its shareholders that will allow them to purchase more GME stock and lock in gains if the share price rises above a certain threshold. Existing stockholders as of today (Oct. 3) will receive one warrant for every 10 shares they own.
Each warrant allows the shareholder to purchase one share of common stock at $32 until Oct. 30, 2026. GME stock is currently trading at $26.73 per share. GameStop disclosed the special dividend last month and plans to distribute the warrants on Oct. 7 of this year.
Shifting Fortunes
GME stock was trending higher leading into Oct. 2, which was the last day to buy shares and qualify for the warrants. The company’s stock is down 15% this year but up 27% over the past 12 months. Earlier in 2025, GameStop announced plans to adopt a crypto treasury strategy and add Bitcoin (BTC) to its balance sheet.
The issuing of warrants to shareholders can raise concerns about dilution. Should GameStop shares rise above $32 and some investors exercise their warrants, the company will issue new stock, reducing the percentage ownership of other stockholders. However, if exercised, the warrants could generate up to $1.9 billion in proceeds for GameStop, giving the company’s finances a boost.
Is GME Stock a Buy?
Owing to its notoriety as a meme stock, few analysts cover GameStop. So, instead, we’ll look at the three-month performance of the company’s share price. As one can see in the chart below, GME stock has risen 20.34% in the last 12 weeks.
