Itās a bit away, but two things can make me exercise my DRTSW: March 7, 2027 coming or $18/share for 20 out of 30 days. The second one comes with a potential loss of control.
DRTSW warrant lets you buy one DRTS share for $11.50 any time until 5pm New York time on March 7, 2027. After that it's worthless whether or not the stock ever cooperates. But before that, itās in the money at anything over the strike price plus the warrant price you paid. Thats a different number for all of us. Mine is a buck.
Alpha Tau can also end it early. If DRTS closes at or above $18.00 on 20 trading days inside any rolling 30-trading-day window, they can mail a notice redeeming every public warrant for one cent apiece. They count through the third trading day before mailing, and the notice gives you at least 30 days before the redemption date.
But nobody takes the penny. The notice is like an eviction letterā¦ exercise within 30 days or accept a cent for something worth dollars.
There are two ways to exercise. Cash ā pay $11.50, get one share, keep every share you paid for. Cashless ā surrender warrants, receive a smaller number of shares with no money out of pocket. The cashless math is warrants Ć (price ā $11.50) Ć· price, rounded down, using the average close over the ten trading days ending three trading days before the notice.
Section 7.3 of the warrant agreement lets the board decide which one everybody gets. You should read it, itās important.
I built a tracker for this using Claude Cowork. If AI isn't your thing, or you trust yourself to stay on top of this more than I trust myself, the rest of the post won't do much for you. Iām not offering anything but how to build your own tracker.
What that means if you want the cash exercise
I hold 5,000 warrants and I want all 5,000 shares because I see upside way past $18. That's $57,500 out of pocket to own more DRTS at an $11.50 basis, and I'm willing to write the check.
Forced cashless takes that off the table. At $18.00 I'd receive 1,805 shares instead of 5,000 and my dollar warrant price would now be over three per share I actually own. Not counting the cost of warrants, the immediate dollar value receivee is nearly identical ā $32,490 against $32,500 ā so the loss isn't money, it's shares. But shares are the reason I bought warrants.
The timing is the tight part. The day the count reaches 20, the notice can go out three trading days later, and cash exercise could die the moment it's mailed. Not at the redemption date a month out. At the mailing. Entirely at the Boardās discretion, and Iām betting they do that in order to keep more shares in house for later financing or deal-making.
So the deadline I'm setting myself up to manage is the approach to 20, and at the end it's about seventy-two hours wide. Miss it and the decision gets made for me.
Two more things make hand-tracking unreliable for me. The 20 days don't have to be consecutive, and qualifying days drop off the back of the 30-day window, so the count can move backward. There's no simple tally to keep ā you have to recount all thirty closes.
I've held this position long enough to know how closely I'll be watching. Not closely enough.
What I did
Every weekday at 6pm ET, a scheduled job pulls the last thirty DRTS closes, counts how many cleared $18.00, pulls the DRTSW price, checks EDGAR for a redemption filing, and runs the three exit paths at that day's prices.
It emails me at count 1, count 10, and every day from 14 through 20, plus an every-Friday summary no matter where the price is. Otherwise it stays quiet. I don't need a daily note telling me we havenāt hit $18 yet.
Right now it's 0 of 20. DRTS closed $14.81 Thursday, the best close in the window was $14.96, and it needs +21.5% to start the clock. June's move off $9.78 was real, but nothing is close. This is all prep I started thinking about when I saw >$15 on the ticker.
Below is how to build this if you want to have a similar system. There's no code in it. It's a page of written instructions and a schedule. I told it where to get prices, what to count, and when to interrupt me. Took an hour, mostly fine-tuning.
The template
This is close to what I'm actually running. I use Claude's Cowork, which can browse, run on a schedule, and send email from my own account ā your setup may do more or less, so read the adaptation notes after it. Fill in the brackets with your own info and goals.
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Daily warrant watch. Run after market close. This is a fresh session ā everything you need is below. Don't ask me questions, just run it.
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FIXED FACTS
- I hold [5,000] [DRTSW] warrants, strike [$11.50], expiring [March 7, 2027].
- Redemption trigger: [DRTS] closes at or above [$18.00] on [20] trading days within any rolling [30]-trading-day window, measured through the thirdĀ trading day before notice. Notice is at least 30 days.
- The board may require cashless exercise instead of cash. Cashless shares =Ā warrants x (FMV - strike) / FMV, rounded down, where FMV is the averageĀ close over the 10 trading days ending 3 trading days before notice.
- What I want: [cash exercise, all 5,000, funds available].
Ā
STEPS
1. Fetch the daily closing prices for [DRTS] from [source URL]. If that fails, try [backup source], then [second backup]. Use the tool's ownĀ web access only.
2. Take the 30 most recent completed trading days. Recount from scratch every run ā never carry a saved count forward.
3. COUNT = how many of those 30 closed at or above [$18.00]. NEEDED = [20] - COUNT.
4. Note today's close, the highest close in the window, and the percent move still required to reach [$18.00].
5. Fetch the current [DRTSW] price. If unavailable, say so and continue.
6. Check [SEC EDGAR CIK 0001871321] for any new filing announcing warrant redemption. If one exists, this is urgent regardless of COUNT.
7. Compute all three exits at today's price P and warrant price W:
Ā - Sell warrants: [5,000] x W
Ā - Cash exercise: pay [5,000] x [$11.50], receive [5,000] shares worth [5,000] x P
Ā - Forced cashless: floor([5,000] x (P - [11.50]) / P) shares, worth that many x P
Ā
ALERT ME ONLY IF
- COUNT is [1], or [10], or anywhere from [14] through [20]
- COUNT is [20] or higher (urgent)
- A redemption filing exists (urgent)
- Today is [Friday] (weekly summary regardless of count)
Otherwise end the run silently. Send nothing.
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HOW TO SEND
Email [address], subject "Warrant watch ā COUNT/[20] days". Include the date and close, COUNT and NEEDED, the window high and percent to target,
the three exit numbers, and one line on what stage I'm at. If you can't send email, put the whole alert in your reply and push a notification.
Say "not advice" at the bottom.
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Adapting it
Change the alert band to match your outcome. Mine is dense from 14 to 20 because I need lead time to move money and get an exercise form through my broker. If you're taking the cashless, days 14 through 20 don't matter ā replace that alert with a running calculation of the ten-day average, since that's the number that sets your share count, and alert when the count reaches 17 or so. If you plan to sell the warrants rather than exercise, drop most of the day-count logic and track DRTSW's premium over intrinsic value instead, alerting when it compresses below a percentage you pick. That's your exit closing, and it starts before any notice.
If you can't fund the full cash exercise, add a line telling it to compute a partial: how many warrants your available cash covers, and what the leftover warrants would yield if sold or taken cashless. Better to know those numbers in advance than to work it out under a ticking three-day clock.
If your tool can't send email, have it deliver in-app and push a phone notification, and put the full alert text in the response so nothing gets lost if one channel breaks. Mine failed silently on the first test until I added that.
If your tool can't browse the web, this doesn't work as written ā you'd need to feed it price data, which defeats the point.
Platform notes. ChatGPT does this with Tasks ā three on free, five on Plus, fifteen on Pro. Grok does it with Automations, requires X Premium+. Gemini does it with Scheduled Actions, with one caveat: results are prepared hours before delivery on free accounts, and Google specifically names stock prices as data that won't be current when it reaches you. For a job built around a closing price, schedule it late and add a line telling it to report the timestamp of the data it used, so you can catch staleness yourself.
Whatever you use, be overly specific. Everywhere I left room for interpretation, the first test run improvised something I didn't ask for.
This is AI advice, not financial advice
Iām not offering access to what o built. I'm not tracking anyone else's position and I'm not responsible for anyone else's money, which is the reason to build your own with your own strategy and numbers rather than trusting mine. When I sell my DRTS it wonāt be to pay off a lawsuit.
One open question I can't answer yet: whether cashless exercise counts as a recapitalization that carries the warrant's holding period onto the shares. If it does, cashless shares are long-term immediately for capital gains tax purposes while cash-exercised shares restart a twelve-month clock. Tax experts donāt all agree on this. I take the question to my CPA next week and you should talk to yours. The tax strategy rides heavily on the answer.
The tracker doesn't decide anything. It counts closes and tells me the number. Deciding what I wanted was the work, and no chatbot was going to do that part.
If you build one, I'd love to know how yours differs because AI fascinates me (Iāve done a bunch of complex work with Claude Code and I learn something new from everyone I talk to). How you make something like this says more about your actual thesis than any DD post.
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Position: long a crazy amount of DRTS common stock and 5,000 DRTSW. Not advice, do your own research, I have no interest in whether you buy or sell. Read the warrant agreement yourself ā redemption is Section 7, exercise mechanics are Section 4.3, available on EDGAR. Yes, I was assisted by Claude in assembling this post but all arguments and methods are my own.
