The
Mudrick's gains derive from a combination of paper gains and realized trades, the person said.
Last week, AMC shares nearly tripled in value as the cinema chain's stock caught the attention of individual investors swarming popular Reddit forums who were looking to repeat the dizzying rally seen in shares of GameStop Corp.
Most of
The firm also made about
When Mudrick provided AMC with the new loan, the firm also received AMC shares as part of its commitment fee, as well as part of a swap of some of the firm's holdings in junior AMC bonds. In that transaction, Mudrick swapped
The hedge fund, however, sold all of its AMC shares before last week's rally, the person added. The firm reinvested those proceeds into junior AMC bonds.
AMC shares ended the week at
Weeks after AMC warned it might run out of money and have to file for bankruptcy,
The loan from Mudrick, along with news late last year of highly effective vaccines against Covid-19, fueled investor optimism that enabled the company to eventually raise
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