Is GameStop (GME) About to Make a $4.6 Billion Bitcoin Move?

TLDR

• GameStop CEO Ryan Cohen followed Bitcoin Magazine on X (Feb 20, 2025) – his first new follow in 4 years besides GameStop’s official account
• A recent photo showed Cohen meeting with Michael Saylor, though CNBC sources say Saylor isn’t directly involved in GameStop’s Bitcoin plans
• GameStop has $4.616 billion in cash/investments (as of Oct 2024) and authority to invest in cryptocurrencies without shareholder approval
• If converted to Bitcoin, GameStop could acquire about 48,000 BTC at current prices ($97,708), becoming the second-largest corporate holder
• GameStop’s stock increased 8% in after-hours trading following the Bitcoin investment speculation

A series of recent events involving GameStop CEO Ryan Cohen has sparked discussion about the company’s potential entry into Bitcoin investment.

On February 20, 2025, Cohen added Bitcoin Magazine to his X (formerly Twitter) follows, marking only the second account he follows besides GameStop’s official handle.

🚨 Ryan Cohen just started following the BITCOIN MAGAZINE on Twitter 👀 pic.twitter.com/XwyPOehjlh

— Josh (@heyitspixel69) February 20, 2025

The social media activity comes after a photograph emerged two weeks ago showing Cohen meeting with Michael Saylor, Executive Chairman of Strategy. Saylor leads his company’s Bitcoin strategy, which has resulted in the acquisition of nearly 500,000 BTC.

However, two unnamed sources told CNBC that Saylor has no direct involvement in any potential GameStop Bitcoin plans.

GameStop currently holds $4.616 billion in cash, cash equivalents, and marketable securities as of October 31, 2024. This substantial cash reserve has become the center of attention as investors and analysts consider the possibility of its conversion to Bitcoin.

Investment Policy

Tim Kotzman, host of “The Bitcoin Treasuries Podcast,” highlighted that GameStop’s investment policy gives Cohen broad authority in cryptocurrency investments. The policy allows him to invest in cryptocurrencies without requiring approval from shareholders or the board.

According to analyst Han Akamatsu’s calculations, if GameStop converted its entire cash reserve to Bitcoin at current prices ($97,708), it could acquire approximately 48,000 BTC. This would position GameStop as the second-largest corporate holder of Bitcoin, ahead of MARA Holdings but behind Strategy.

The market has already shown reaction to these possibilities. GameStop’s stock price rose 8% in after-hours trading as investors responded to the cryptocurrency investment speculation.

GameStop’s relationship with cryptocurrency isn’t new. The company previously launched crypto wallets in 2022, though these were later discontinued due to regulatory concerns.

The gaming retailer’s potential interest in Bitcoin follows its earlier role in the “meme stock” phenomenon during the pandemic. During that period, retail investors united behind GameStop’s stock, challenging major hedge funds that had taken short positions.

The timing of Cohen’s recent actions has drawn attention from market observers. His meeting with Saylor and subsequent Bitcoin Magazine follow occurred during a period of rising Bitcoin prices and increased institutional interest in cryptocurrency.

Silence from Cohen

Despite the market speculation, Cohen has maintained public silence regarding any specific plans for Bitcoin investment. GameStop has not released official statements about potential cryptocurrency purchases.

The company’s large cash reserve provides various investment options. At current market prices, converting even a portion of GameStop’s $4.616 billion cash position to Bitcoin would represent a major development in corporate treasury management.

Recent trading activity suggests investors view potential cryptocurrency investment positively. The 8% after-hours trading increase indicates market approval for possible Bitcoin adoption.

Bitcoin traded at $97,708 during these developments, with GameStop’s stock showing increased activity in response to the investment speculation.

GameStop’s history with blockchain technology includes earlier ventures, though none at the scale currently being discussed. The discontinued crypto wallets from 2022 represent the company’s previous engagement with digital assets.

The gaming retailer’s cash position of $4.616 billion represents a substantial sum in the context of corporate Bitcoin holdings. Current market conditions and prices would allow for a major position in the cryptocurrency market.

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