GameStop’s Bitcoin Strategy Sparks Market Speculation as Stock Surges 16%
GameStop (GME) shares soared 16% on Wednesday following the company’s announcement that it plans to allocate a portion of its $4.8 billion cash reserves into bitcoin (BTC) and stablecoins.
The gaming retailer’s fourth-quarter earnings report on Tuesday confirmed its sizable cash holdings, but the exact amount earmarked for crypto remains undisclosed. CEO Ryan Cohen had previously hinted at an interest in bitcoin, a sentiment echoed by Matt Cole, CEO of Strive Asset Management, a shareholder of GameStop through its ETFs.
Market Buzz Over Bitcoin Allocation
GameStop’s decision has ignited widespread speculation on social media, with investors debating how much bitcoin the company might actually acquire.
Anthony Pompliano, founder and CEO of Professional Capital Management, believes the allocation will be substantial. “GameStop wouldn’t go through the bureaucratic hassle of board approval just to invest a mere 1-2% in bitcoin,” he noted. “Ryan Cohen is likely making a bold move to position bitcoin as a key balance sheet asset.”
Pompliano also pointed out Cohen’s engagement with bitcoin-related content on X (formerly Twitter), describing it as “behavior of a hardcore bitcoiner.”
Michael Saylor, whose firm MicroStrategy (MSTR) has amassed over 500,000 BTC worth $33 billion, polled his followers on X, asking how much bitcoin GameStop would need to hold to “be respected by Bitcoiners.” The consensus: at least $3 billion.
Will GameStop Go All In?
It remains uncertain whether GameStop will pursue an aggressive bitcoin acquisition strategy akin to MicroStrategy. While the company has leveraged creative fundraising tactics—including debt sales—to bolster its cash reserves, its approach to BTC accumulation is yet to be seen.
Interestingly, GameStop’s stock rally could be less affected by bitcoin price fluctuations since the company has only announced plans to buy, rather than confirming any purchases.
Former bond trader Josh Mandell highlighted the paradox on social media: “GameStop’s stock is surging over a BTC buy that hasn’t even happened yet. I won’t ask anyone to make it make sense.”
