Speculation is swirling around GameStop, the video game retailer turned meme stock icon, as rumors suggest it may soon invest in Bitcoin. The chatter intensified after CEO Ryan Cohen posted a photo with Michael Saylor, the outspoken Bitcoin advocate and executive chairman of Strategy, on X. Reported by Forbes on March 25, the image has sparked a frenzy among investors and crypto enthusiasts, with many eyeing GameStop’s $4.6 billion cash pile as fuel for a potential plunge into digital assets.
Cohen’s snapshot with Saylor, whose firm holds over 500,000 BTC valued at roughly $47 billion as of mid-March, per Strategy filings, sent GameStop shares (GME) up 7% in after-hours trading on March 24. The retailer, once a brick-and-mortar staple battered by digital gaming trends, has $4.616 billion in cash and equivalents as of its Q3 2024 SEC filing—a war chest amassed under Cohen’s leadership since 2021. That liquidity, paired with a 2023 board-approved investment policy granting Cohen broad authority to deploy funds into equities and cryptocurrencies, has analysts and traders buzzing.
Saylor’s influence looms large. Strategy’s Bitcoin strategy, launched in 2020, transformed it into the world’s largest corporate BTC holder, boosting its market cap to $83 billion by late 2024, per CNBC. Saylor, with a net worth Forbes pegs at $9.1 billion, has evangelized corporate Bitcoin adoption, famously urging firms to “buy Bitcoin” on X. His meeting with Cohen—a retail disruptor who co-founded Chewy and took GameStop’s helm amid the 2021 short squeeze—hints at a possible playbook swap. “If GameStop put even half its cash into BTC, it’d be the second-biggest corporate holder overnight,” analyst Han Akamatsu noted on X.
The rumor isn’t baseless. GameStop dabbled in crypto before, launching an NFT marketplace in 2022 and a wallet in 2023, only to shutter both by 2024 citing regulatory uncertainty. Now, a pro-crypto U.S. administration under President Donald Trump—who hosted a March 7 Crypto Summit and signed a Bitcoin reserve order on March 6—may ease such hurdles.
Market reaction was swift. Alongside GME’s jump, Ethereum-based GameStop-themed tokens soared 50% in 24 hours, with trading volume up 37% to $1.83 million. Solana’s GmeStop token rose 3%, though both are speculative coins unaffiliated with the company. MicroStrategy’s stock (MSTR) ticked up 2% to $334.62 on March 24, per Forbes, reflecting broader crypto optimism. Bitcoin buoyed by Trump’s policies and a $35 billion ETF inflow surge in 2024.
Skeptics urge caution. GameStop’s core business—physical game sales—remains shaky, with over 700 store closures since 2020 and a $363 million loss in the first nine months of 2024, per SEC filings. Wedbush’s Michael Pachter rates it “underperform” at $10, arguing its $7 billion market cap leans heavily on cash, not operations. A Bitcoin bet could amplify volatility; a 16% BTC drop in 30 days earlier this year, per Mitrade, shows the risks. “This is hype, not strategy,” warned Seeking Alpha’s Tim K.
Still, the Cohen-Saylor photo has legs. GameStop’s earnings call looms, and hint at a possible BTC announcement. With $4.6 billion and a meme stock legacy, could GameStop redefine itself as a crypto contender—or just spark another fleeting rally?
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