GameStop, under new CEO Ryan Cohen, may explore investing in Bitcoin as it looks to diversify its cash reserves. This comes after a recent post by Cohen, showing him standing next to Michael Saylor, the CEO of Microstrategy, which has been a major player in adopting and promoting Bitcoin.
The company’s interest in cryptocurrency is seen as a response to rising BTC prices, which have more than doubled from around $60,000 to over $100,000 in the past six months. This surge is partly attributed to the recent election of Donald Trump, a self-proclaimed crypto enthusiast.
Despite having a large cash reserve of $3.45 billion, Cohen has yet to present a clear plan for GameStop’s future strategy. The company has been focusing on reducing its unprofitable brick-and-mortar footprint and shrinking revenue. However, this move has also led to the loss of jobs and store closures.
GameStop’s lack of transparency in its financial filings and investor calls makes it harder for investors to understand its business model. A similar approach taken by Microstrategy, which engages in outright financial engineering, may be considered as a way to diversify its cash reserves.
The question remains whether there is demand for an investment story focused on Bitcoin at GameStop. The company would need to demonstrate the viability of this strategy and address concerns about its business model. As of now, shares are up 5% in trading.
Source: https://fortune.com/2025/02/14/gamestop-ryan-cohen-bitcoin-btc-speculation-follow-microstrategy-michael-saylor