Chanos Responds to Michael Saylor, Calls Him a Salesman
Chanos & Co. founder Jim Chanos responds to Michael Saylor dismissing his recommendation to short the shares of Strategy and buy Bitcoin. He speaks with Scarlet Fu on Bloomberg Television.
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Yahoo
2 hours ago
- Yahoo
Will GameStop's Bitcoin Swing Be a Home Run or an Epic Fail?
GameStop recently invested $500 million in Bitcoin and plans to buy much more. The struggling video game retailer has billions in cash and is aiming to diversify its business. There's no way to know how the company's investment will play out. 10 stocks we like better than GameStop › Video game retailer GameStop's (NYSE: GME) business has been struggling for years, as more of the gaming market continues to shift to digital downloads. However, the stock was the subject of massive investor attention during the meme stock frenzy of 2020 and 2021, with a renewed spike in interest last year -- during which the company raised quite a bit of capital. These days, GameStop has roughly $6.4 billion in cash and equivalents on its balance sheet, a lot considering its $10 billion market cap. And more recently, GameStop is gradually diversifying its business, including its newest strategy of investing substantial sums of money in Bitcoin (CRYPTO: BTC). There are a couple of different components of GameStop's Bitcoin investment that are important for investors to know. First, investors learned on May 28 through a company press release that GameStop had purchased 4,710 Bitcoins, which means that the company invested approximately $500 million in the digital asset. More recently, GameStop announced plans to buy even more Bitcoin, and that it would complete a $1.75 billion convertible note offering to do it. The short version is that a convertible note is a type of debt security, and the holders have the option to convert the debt into common stock at a certain price. The company then decided to up its offering to $2.25 billion. The convertible notes, which mature in June 2032 unless converted or redeemed, will have an initial conversion price of $28.91 per share. With GameStop stock trading for about $22.50 as I'm writing this, that means that the stock would need to rise about 28% for conversion to become worthwhile. Notably, the convertible notes don't pay interest -- so for the time being, GameStop isn't adding any ongoing interest expense. GameStop CEO Ryan Cohen said that the company is investing heavily in Bitcoin to protect against macroeconomic worries. After all, Bitcoin's fixed supply and non-governmental nature have historically made the digital currency appealing to many investors. This certainly isn't a unique philosophy. Strategy, formerly known as MicroStrategy, has been accumulating Bitcoin for several years -- and has used some convertible debt to do it. And it's tough to argue with management's decision. Since August 2020, when the company first started buying Bitcoin, Strategy's stock price is up by more than 2,900%. Truth Social parent company Trump Media & Technology Group has also announced a plan to buy billions in Bitcoin. Judging by the market's reaction to the news, it doesn't seem that investors are convinced that holding massive quantities of Bitcoin is the best strategy, especially when some of it will be purchased with debt. Looking at the chart below, we can see that there were two major drops in GameStop's stock price over the past month -- one after each Bitcoin-related news item was announced. Overall, GameStop is down by about 20% over the past month, with the larger of the two declines coming after the convertible debt plan was revealed. To be sure, I have absolutely no clue what the price of Bitcoin will do over the next few months or years. If Bitcoin continues to appreciate in value, GameStop's move could look like a stroke of genius in a few years. But if it falls, it could end up being a poor capital allocation decision. Before you buy stock in GameStop, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GameStop wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. Will GameStop's Bitcoin Swing Be a Home Run or an Epic Fail? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Times
2 hours ago
- New York Times
I Want to Use a Co-op as a Pied-à-Terre. Do I Need to Tell the Board?
Q: I don't live in New York, but I'm interested in buying a one-bedroom co-op in Manhattan so I can visit my son in Brooklyn or use for vacations. I'd also like to let relatives or very close friends stay there occasionally when I'm not around. I know that some co-ops allow, while others do not. But how do I find out without leading the co-op board to falsely believe that I would turn it into a short-term rental? When I ask listing agent if visitors can stay in the unit when the owner isn't there, they quickly tell me that it's better not to ask. How can I find out without tanking my application? A: There is a way to get an answer without alerting a co-op board to your intentions, but you need to be cautious and do your due diligence. Make sure that your desire to use the apartment as an occasional home is permitted in the co-op's proprietary lease and the house rules. You can ask your broker to get the governing documents from the seller's broker. Once you establish that it is allowed, look to see what the rules are about guests. Who is allowed to stay? And can they be there when you are not? 'If you see pieds-à-terre are allowed, and there aren't any restrictions, don't ask the board if there are restrictions,' said Lisa Chajet, a broker at Coldwell Banker Warburg, who specializes in co-ops. 'It's nothing a buyer brings up to a board under any circumstances.' But this might be tough to find, said Andrew B. Freedland, who practices condominium and cooperative law at Herrick. The law firm represents many co-ops in Manhattan. 'I can tell you that the overwhelming majority of them would not be OK with various relatives coming in and out of an apartment when the lessee is not there,' Mr. Freedland said. 'I would be very cautious about this sort of setup.' In many buildings, rules against overnight guests were put in place long before the city passed Local Law 18 restricting short-term rentals in 2023. This means that even if there is no short-term written agreement with your guests, and even if no money is changing hands, lending your apartment to them would still be against the building's rules. You might consider a condominium instead. The rules might be more flexible when it comes to overnight guests when you aren't there, Mr. Freedland said. A knowledgeable real estate agent or broker could help you find the right building.
Yahoo
5 hours ago
- Yahoo
Bitcoin Tumbles Below $104K as Israel Strikes Iran
Bitcoin BTC substantially added to earlier losses, slumping to as low as to $103,162 as Israeli forces bombed nuclear and military targets in Iran, including in the capital Tehran, before recovering somewhat to trade 2% lower than 24 hours ago. Israeli Prime Minister Benjamin Netanyahu said the country attacked Iran's nuclear program and ballistic missile sites to "roll back the Iranian threat to Israel's very survival," and that the strikes will continue until the threat is removed. The attack followed hours after the International Atomic Energy Agency said Iran was not complying with restrictions on enriched uranium for the first time in two decades. NBC reported that Israel was considering a strike following the IAEA's statement. U.S. President Donald Trump told reporters that the he would prefer a deal with Iran and an attack could lead to a "massive conflict." On Polymarket, bettors were unsure about the chance of a strike taking place with the likelihood of Israeli action against Iran by July being priced in at under 30 cents. The attacks were first reported by Axios with Al-Jazeera later confirming that explosions were heard in Tehran. European stocks fell, with the Euro Stoxx 50 Index losing 1.4% and the FTSE 100 dropping 0.7%. U.S. stock index futures are lower by about 1.4% across the board on the news. Moving higher are bond prices, gold and oil. The 10-year Treasury yield dipped 2 basis points to 4.32% while gold futures added 1% to $3,436 per ounce. Crude oil futures soared as much as 9% and were recently trading about 5.6% higher. The U.S. dollar is gaining against the euro and British pound, but losing ground versus the yen and Swiss franc. CORRECT (June 13, 08:05 UTC): Corrects Netanyahu's position to prime minister. An earlier version of the story said he is Israel's president. Adds Israel's confirmation of the attack, updates in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
