Speculation is once again swirling around the possibility of GameStop adopting a Bitcoin treasury strategy, following a meeting between GameStop CEO Ryan Cohen and Strategy (formerly MicroStrategy) Executive Chairman Michael Saylor. Cohen shared a photo on X (formerly Twitter) of the two executives together, sparking fresh rumors about the gaming retailer’s potential crypto plans.
While GameStop has yet to make any official announcements regarding Bitcoin investments, the company’s strong balance sheet and recent policy changes have fueled the rumor mill. As of October 31, 2024, GameStop reported approximately $4.616 billion in cash, cash equivalents, and marketable securities. Additionally, a recent change in the company’s investment policy grants Cohen the authority to invest in cryptocurrencies without requiring shareholder or board approval.
If GameStop were to allocate its $4.6 billion cash reserves to Bitcoin, it could acquire approximately 48,000 BTC at current prices. This move would position GameStop as the second-largest corporate holder of Bitcoin, surpassed only by MicroStrategy and ranking ahead of MARA Holdings.
The potential impact of a GameStop Bitcoin adoption on the company’s stock price has also been a topic of discussion. Some analysts suggest that the stock could see a significant boost, possibly increasing 5-10 times by the end of the decade. The memories of the 2021 “meme stock” phenomenon, during which GameStop’s share price experienced a dramatic run-up and inflicted heavy losses on some short sellers, add to the intrigue surrounding the potential move.
However, it is crucial to note that, despite the excitement generated by the meeting between Cohen and Saylor, there is currently no concrete evidence to suggest an imminent Bitcoin purchase by GameStop. Historically, Cohen has been tight-lipped about the company’s crypto-related plans, even as GameStop has explored NFTs and blockchain projects in the past.
As the crypto community eagerly awaits further developments, the market impact of a potential GameStop Bitcoin adoption remains speculative. Nevertheless, the renewed rumors serve as a reminder of the growing interest in Bitcoin as a corporate treasury asset and the potential for major players in traditional markets to make significant moves in the crypto space.
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Tags: GameStop, Bitcoin, Ryan Cohen, Michael Saylor, Bitcoin Adoption, Corporate Treasury
Source: https://bitcoinist.com/will-gamestop-buy-bitcoin-cohen-saylor-rumor/