{"id":281380,"date":"2021-06-23T04:36:34","date_gmt":"2021-06-23T01:36:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/hedge-fund-that-shorted-gamestop-closes-as-1-13b-gme-stock-offer-completes\/"},"modified":"2021-06-23T04:36:34","modified_gmt":"2021-06-23T01:36:34","slug":"hedge-fund-that-shorted-gamestop-closes-as-1-13b-gme-stock-offer-completes","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/hedge-fund-that-shorted-gamestop-closes-as-1-13b-gme-stock-offer-completes\/","title":{"rendered":"# Hedge fund that shorted GameStop closes as $1.13B GME stock offer completes"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41299f0bd30\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41299f0bd30\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/hedge-fund-that-shorted-gamestop-closes-as-1-13b-gme-stock-offer-completes\/#GameStop_completes_ATM_offering\" >GameStop completes ATM offering<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Hedge fund that shorted <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop closes as $1.13B GME stock offer completes <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvMDJhNTI1OGQtYjFhZS00ZGM3LTk4ZGItOTdmZjY4NGQyNWE5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>One of the hedge funds badly burned in the infamous GME <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> driven short squeeze is closing down, while GameStop itself has just completed its $1.13 billion equity offering. <\/p>\n<p>According the Financial Times, London-based White Square Capital operated by Florian Kronawitter has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/397bdbe9-f257-4ca6-b600-1756804517b6\">closed<\/a> its main fund and will return capital to investors. <\/p>\n<p>White Square Capital reportedly had $440 million in assets under management (AUM) at its peak. The hedge fund was one of many that suffered double digit percentage losses from short positions in January, when the Wall Street Bets subreddit helped pump GME\u2019s price from $21 on Jan. 12 to around $345 on Jan. 27. <\/p>\n<p>However the FT reported a source as saying the fund\u2019s closure was unrelated to its GameStop misadventure. In a letter to investors, co-founder Kronawitter cited the traditional equity long-short model was being \u201cchallenged\u201d in the current financial climate, as there are \u201cway too many fish in the pond\u201d that operate with the same long-short strategy. <\/p>\n<p>\u201cThe traditional edge is being arbed away [eroded by other investors], there\u2019s an oversupply of capital,\u201d Kronawitter said.<\/p>\n<p>The co-founder also highlighted that the hedge fund\u2019s opportunities for arbitrage have \u201cdiminished\u201d due to the \u201conslaught of capital caused by central bank monetary interventions.\u201d<\/p>\n<p>These factors are also accompanied by the relative ease of access to information and cheaper investment alternatives, with Kronawitter asserting that it brings it to question how the management fees from hedge funds can be justified in the current market. <\/p>\n<p>In a Reddit thread discussing the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> on the r\/wallstreetbets subreddit, members of the group <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reddit.com\/r\/wallstreetbets\/\">shared<\/a> their delight, with user \u201cturtleduck77\u201d likening hedge funds that shorted GME to dominoes falling, noting that its \u201cTime to invest in dominoes! The game not the pizza.\u201d<\/p>\n<p><strong>Related:<\/strong> <em>New decentralized crypto exchange is inspired by r\/Wallstreetbets<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"GameStop_completes_ATM_offering\"><\/span>GameStop completes ATM offering<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yesterday GameStop <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/investor.gamestop.com\/news-releases\/news-release-details\/gamestop-completes-market-equity-offering-program-0\">announced<\/a> the completion of an at-the-market (ATM) equity offering, with the company selling five million shares of common stock generating almost $1.3 billion before commissions and offering expenses. <\/p>\n<p>\u201cGameStop will use net proceeds from the ATM Offering for <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet,\u201d the announcement read.<\/p>\n<p>One of the growth initiatives likely to be funded is GameStop\u2019s NFT marketplace set to be launched on Ethereum. <\/p>\n<p>While details are sparse at this stage, the firm\u2019s blockchain division is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/metaversal.banklesshq.com\/p\/gamestop-nfts\">reportedly<\/a> headed by the former business operations leader of Ethereum and Loopring DEX, Matt Finestone.<\/p>\n<p>The smart contract platform is based on the ERC-721 NFT standard and was created by foobar, a developer who has worked on wr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>er solutions for the classic version of Crypto Punks, HD Mooncats, and MooncatHelper NFT projects in the past. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"und\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/ruuCD2q8JD\">https:\/\/t.co\/ruuCD2q8JD<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/CxcaGKPeJk\">pic.twitter.com\/CxcaGKPeJk<\/a><\/p>\n<p>\u2014 foobar (@0xfoobar) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/0xfoobar\/status\/1397270344239509505?ref_src=twsrc%5Etfw\">May 25, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>While top crypto assets and memecoins have been in a major down trend since May 12, GME\u2019s meme stock has increased 36.6% within that time frame, increasing from $161 on May 12, to $220 as of today, according to TradingView. <\/p>\n<p>In comparison, data from CoinGecko shows that crypto\u2019s nearest equivalent in meme coin Dogecoin has cooled down, has dropped 64% \u2014 declining from a price range of $0.50 on May 12, to $0.18 today. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/hedge-fund-that-shorted-gamestop-closes-as-1-13b-gme-stock-offer-completes\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Hedge fund that shorted GameStop closes as $1.13B GME stock offer completes &#8221; One of the hedge funds badly burned in the infamous GME social media driven short squeeze is closing down, while GameStop itself has just completed its $1.13 billion equity offering. According the Financial Times, London-based White Square Capital operated by Florian&#8230;<\/p>\n","protected":false},"author":1,"featured_media":281381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvMDJhNTI1OGQtYjFhZS00ZGM3LTk4ZGItOTdmZjY4NGQyNWE5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[95118,117,73711,70359],"class_list":["post-281380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-nft","tag-business","tag-investments","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/281380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=281380"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/281380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/281381"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=281380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=281380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=281380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}