Could GameStop Join the Bitcoin Treasury Trend?

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In a surprising turn of events, shares of GameStop (GME) surged in after-hours trading on February 13, 2025, following reports that the struggling video game retailer might be considering an investment in Bitcoin and other cryptocurrencies. According to CNBC, citing anonymous sources, GameStop is exploring the possibility of allocating part of its substantial cash reserves into digital assets—potentially positioning itself as the next public company to adopt a Bitcoin treasury strategy.

The stock jumped nearly 20% before settling around $26.34—a notable move for a company that has seen more volatility in market sentiment than in actual business performance over recent years.

The Rise and Struggles of a Meme Stock Icon

GameStop rose to fame during the 2021 retail trading frenzy, when retail investors—spurred by figures like Keith “Roaring Kitty” Gill—drove the stock to astronomical highs, defying Wall Street expectations. While Gill’s reappearances in 2024 briefly reignited investor enthusiasm, the underlying fundamentals of GameStop’s core business remain weak.

As a brick-and-mortar retailer specializing in physical games and collectibles, GameStop faces an existential challenge: the gaming industry is rapidly shifting toward digital distribution and cloud-based platforms. This transition has steadily eroded GameStop’s revenue base, leaving it increasingly reliant on cost-cutting measures rather than organic growth.

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Wall Street Skepticism Persists

Wall Street analysts remain largely unconvinced about GameStop’s long-term viability. Michael Pachter, an analyst at Wedbush, recently reiterated his “underperform” rating on the stock with a $10 price target. He argued that after accounting for cash, the operating business holds little intrinsic value.

“GameStop aims to return to growth,” Pachter noted, “but it faces insurmountable headwinds.” The decline in physical game sales, combined with shrinking foot traffic in malls, continues to pressure margins and limit expansion opportunities.

Despite these challenges, GameStop has maintained a strong balance sheet. As of November 2023, the company held approximately $4.6 billion in cash and cash equivalents—a war chest that has fueled speculation about how CEO Ryan Cohen might deploy this capital to revive investor confidence.

A Strategic Pivot to Cryptocurrency?

While GameStop’s foray into blockchain technology began cautiously in 2022 with the launch of its own crypto wallet and plans to integrate NFTs into gaming ecosystems through partnerships with companies like Immutable, regulatory uncertainty led to the shutdown of its NFT marketplace in early 2024.

Yet, interest in digital assets appears far from dead within the company. The recent rumors about Bitcoin investment come at a time of growing institutional adoption—and heightened political support for crypto in the U.S.

With the new presidential administration expressing favorable views toward cryptocurrency innovation, now may feel like an opportune moment for bold moves. And few moves would be bolder than following in the footsteps of MicroStrategy, the world’s largest corporate holder of Bitcoin, whose BTC holdings exceed 460,000 coins, valued at over $46 billion.

Ryan Cohen and the Saylor Connection

Adding fuel to the speculation was a photo posted by Ryan Cohen last week showing him alongside Michael Saylor, Executive Chairman of MicroStrategy and one of Bitcoin’s most vocal corporate advocates. Though no official statement accompanied the image, the symbolism was clear—and markets reacted swiftly.

Luke Kawa, an analyst at Sherwood Research, observed that Cohen’s social media activity has repeatedly influenced GME’s stock price. “Investors are interpreting this meeting as a signal,” Kawa said. “They’re betting Cohen could use GameStop’s $4.6 billion liquidity to emulate Saylor’s ‘one rule’ strategy: buy Bitcoin.”

This approach—holding BTC as a long-term treasury reserve asset—has transformed MicroStrategy from a niche software firm into a de facto leveraged Bitcoin ETF. Its success has inspired other companies, including Tesla and Square (now Block), to experiment with Bitcoin balance sheet integration.

Could GameStop be next?

Why Bitcoin Makes Strategic Sense—For Some

For companies with large cash reserves and uncertain growth prospects, Bitcoin presents a unique proposition: a scarce, decentralized digital asset that has outperformed most traditional asset classes over the past decade.

With inflation concerns lingering and interest rates potentially entering a downward cycle, holding idle cash yields diminishing returns. In contrast, Bitcoin—despite its volatility—offers the potential for substantial long-term appreciation.

If GameStop were to allocate even a fraction of its cash into Bitcoin, it could:

👉 See how forward-thinking firms are reshaping their financial strategies with Bitcoin adoption.

However, such a move carries risks. Bitcoin’s price swings could amplify earnings volatility. Regulators may scrutinize any large-scale crypto purchase, especially from a company under intense public scrutiny. And critics argue that speculative holdings do not replace sustainable business models.

What’s Next for GameStop?

While there has been no official confirmation from GameStop regarding any plans to invest in Bitcoin, the mere possibility has reignited market excitement. Under Ryan Cohen’s leadership, the company has already shown a willingness to challenge conventional retail wisdom—from aggressive share buybacks to digital transformation efforts.

The board-approved investment policy from December 2023 grants Cohen and select directors authority over managing the company's investment portfolio—so any move into crypto would not require full board approval unless it deviates from established guidelines.

Still, turning $4.6 billion into a Bitcoin war chest isn’t just a financial decision—it’s a philosophical one. It would represent a bet not just on technology, but on a new paradigm of corporate treasury management.

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Frequently Asked Questions (FAQ)

Q: Has GameStop officially announced plans to buy Bitcoin?
A: No, as of now, GameStop has not made any official announcement regarding Bitcoin or cryptocurrency investments. The reports are based on anonymous sources and market speculation.

Q: How much cash does GameStop have available for potential investments?
A: As of November 2023, GameStop held approximately $4.6 billion in cash and cash equivalents—funds that could theoretically be used for strategic investments like Bitcoin.

Q: Who is Ryan Cohen, and why is he influential in this situation?
A: Ryan Cohen is the CEO and former board member of GameStop, known for co-founding Chewy.com. Since joining GameStop, he has pushed for operational reforms and digital transformation, giving him significant influence over strategic decisions.

Q: What is a Bitcoin treasury strategy?
A: A Bitcoin treasury strategy involves a company purchasing and holding Bitcoin as part of its balance sheet reserves instead of keeping funds in cash or low-yield assets. It's designed to protect against inflation and capitalize on BTC’s long-term appreciation.

Q: Did GameStop previously engage with blockchain technology?
A: Yes, GameStop launched a crypto wallet in 2022 and partnered with Immutable to support NFT-based gaming assets. However, it shut down its NFT marketplace in 2024 due to regulatory uncertainty.

Q: Could investing in Bitcoin save GameStop’s declining business?
A: While a Bitcoin investment could boost investor sentiment and stock performance temporarily, it does not address fundamental challenges in GameStop’s retail operations. Long-term survival will depend on real business innovation—not just asset speculation.

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