In a transfer that has reignited ongoing hypothesis throughout the Bitcoin neighborhood, GameStop CEO Ryan Cohen met with Technique (previously MicroStrategy) Government Chairman Michael Saylor on Saturday. Cohen subsequently shared a photograph on X depicting him alongside Saylor—with out offering any extra context.
The submit as soon as once more sparked rumors that GameStop could possibly be considering a Bitcoin treasury technique just like what Technique has pioneered beneath Saylor’s management. Notably, this isn’t a brand new rumor, however there was no concrete proof so far that GameStop has taken any official steps towards a BTC-centric company technique.
Will GameStop Undertake Bitcoin?
Nonetheless, the sight of the 2 executives collectively has energized the rumor mill. One notable voice, Heisenberg (@Mr_Derivatives), commented on X Cohen’s {photograph} “could be the subtle hint” of a forthcoming BTC adoption, permitting the retailer to rework into “a BTC holding company much like MSTR.” He additionally hinted that beneath such a state of affairs, the inventory may “easily 5-10x by the end of this decade,” or probably sooner.
One key factor driving the chatter is the energy of GameStop’s stability sheet. Tim Kotzman, host of The Bitcoin Treasuries Podcast, underscored on X that as of October 31, 2024, the gaming retailer reported roughly $4.616 billion in money, money equivalents, and marketable securities.
He highlighted a current change within the firm’s funding coverage that grants Cohen “the authority to invest […] in cryptocurrencies without requiring shareholder or board approval.” In accordance with Kotzman, this coverage shift opens the door for a “Bitcoin Treasury Company” state of affairs, but he was fast to notice that “as of December 2024, there have been no public disclosures indicating that such investments have been made.”
“If GameStop $GME, were to invest its $4.6 billion cash reserves into BTC, it would acquire approximately 48,000 BTC. This would make GameStop the second largest corporate holder of Bitcoin, ranking behind MicroStrategy and surpassing MARA Holdings,” Han Akamatsu famous by way of X.
BritishHODL (@BritishHodl), a Bitcoin fanatic, posted that GameStop “GameStop could be the straw that breaks the camels back on Wall Street of companies adopting the Bitcoin Reserve Strategy of MSTR to create shareholder value.”
In the meantime, crypto commentator @ProtestFiat took a extra aggressive stance, suggesting that “GameStop […] adopting Bitcoin” may create a state of affairs the place brief sellers discover themselves scrambling, given the potential for a sudden spike in share worth. In a submit, she outlined a sequence of steps: from the preliminary treasury announcement to subsequent share choices used to purchase extra Bitcoin—every section probably fueling extra rallies and brief squeezes.
Although extremely hypothetical, this argument resonates with the recollections of the 2021 “meme stock” phenomenon, throughout which GameStop’s share worth skilled a dramatic run-up and inflicted heavy losses on some brief sellers.
Whereas the commentary from merchants and podcast hosts underscores the intrigue round a attainable Bitcoin pivot, it’s important to notice the hole between rumor and actuality. Traditionally, Cohen has been tight-lipped concerning any crypto-related strikes for the corporate, whilst GameStop dabbled with NFTs and blockchain tasks previously. For the second, no verifiable proof suggests an imminent buy of BTC or different cryptocurrencies.
At press time, BTC traded at $97,083.
Featured picture created with DALL.E, chart from TradingView.com
