GameStop Bitcoin Pivot Spurs Social Media Chatter as Stock Soars 16%

GameStop (GME) saw a 16% increase in its stock price on Wednesday following the announcement that the company would be adding bitcoin (BTC) to its balance sheet. This decision came after the gaming retailer reported holding $4.8 billion in cash during its fourth-quarter earnings report on Tuesday.

CEO Ryan Cohen had previously hinted at the possibility of GameStop purchasing bitcoin for its balance sheet, and this move was further encouraged by Matt Cole, CEO of Strive Asset Management, who also has ownership of GME through its ETFs.

While GameStop did not disclose the exact amount or timing of its bitcoin purchases, the news sparked speculation on social media about the extent of the company’s investment in the cryptocurrency. According to Anthony Pompliano, founder and CEO of Professional Capital Management, GameStop’s allocation to bitcoin is likely to be significant, as evidenced by the effort put into changing its investment policy.

Pompliano also noted that Cohen’s interest in bitcoin, as demonstrated by his social media activity, suggests that he may be planning a substantial investment in the cryptocurrency. A poll conducted by Michael Saylor, CEO of MicroStrategy, indicated that GameStop would need to hold at least $3 billion worth of bitcoin to earn the respect of the bitcoin community.

However, it remains unclear whether GameStop will adopt the same aggressive approach to bitcoin investment as MicroStrategy, which has amassed a significant amount of BTC over the past year. GameStop’s decision to buy bitcoin, without currently owning any, has raised questions about the potential impact on the company’s stock price.

Despite the uncertainty surrounding GameStop’s bitcoin purchases, the company’s stock price has shown resilience to bitcoin price fluctuations. This may be due to the fact that GameStop has only announced its intention to buy bitcoin, rather than already having made significant investments in the cryptocurrency.

Overall, GameStop’s foray into bitcoin investment has generated significant interest and speculation among investors and the cryptocurrency community. The company’s decision to diversify its balance sheet with bitcoin could have far-reaching implications for both GameStop and the broader market.