GameStop Bitcoin: Will the Meme-Stock Giant Eye a Bigger Role in the Crypto Space?

While not a headline-grabbing action in itself, Cohen's move has raised eyebrows. For those familiar with Cohen's track record of bold business moves

GameStop stock soared on Monday amid rumors that the video game retailer is planning to acquire nearly half a billion dollars’ worth of Bitcoin.

The speculation began last week when GameStop’s Chief Executive Officer Ryan Cohen was spotted having dinner with Michael Saylor, CEO of Saylor Technologies (formerly known as MicroStrategy).

Saylor is a prominent advocate for Bitcoin, and his company has acquired nearly 48,000 BTC, making it the largest corporate holder of the cryptocurrency.

Some retail investors are now speculating that GameStop is planning to follow in MicroStrategy’s footsteps and acquire a significant amount of Bitcoin.

GameStop had $4.6 billion in cash and marketable securities as of Jan. 27, according to a regulatory filing.

This cash reserve could be used to buy around 48,000 BTC at current market prices.

GameStop’s investment policy also allows Cohen to make such an acquisition without needing approval from the company’s board of directors.

However, a GameStop spokesperson declined to comment on the rumors when contacted by Blockworks.

Meanwhile, a source close to the matter told Blockworks that Saylor is not involved in any plans to purchase Bitcoin for GameStop.

The rumors of GameStop’s potential Bitcoin acquisition come as the cryptocurrency has been rallying in 2024.

Bitcoin began the year trading around $16,500 but has since surged to above $23,000.

This rally has been driven by a number of factors, including the Federal Reserve’s pivot to a more dovish monetary policy and increasing institutional adoption of Bitcoin.

If GameStop were to acquire approximately 48,000 BTC, it would become the second-largest corporate Bitcoin holder, just behind MicroStrategy.

This move would drastically alter GameStop’s market position and transform it from a traditional retailer into a serious player in the cryptocurrency world.

GameStop aligning with Bitcoin, a trend pioneered by MicroStrategy, could have far-reaching effects.

For GameStop, it would signal a bold new direction, diversifying its revenue streams and potentially reshaping its relevance in an increasingly digital economy.

For Bitcoin, the announcement of such a large-scale corporate acquisition could lead to a price surge and attract both institutional and retail investors.