GME: GameStop Stock Pops 10% as Traders Jump to Conclusions Again—This Time It’s Bitcoin

Retail traders rushed to GME shares after CEO Ryan Cohen posted a picture of him and the world’s biggest Bitcoin maxi Michael Saylor.

🚀 GME Shares Pump 10%

• GameStop stock GME rallied 10% Monday as retail traders scooped up the shares after speculations that the video game retailer might be venturing into Bitcoin. The reason? GameStop chief executive Ryan Cohen posted a picture with the co-founder of Strategy (former MicroStrategy) Michael Saylor.
• And there you have it — GameStop’s market value soared more than a billion dollars on a photo posted on social media. It’s not unusual — the stock is highly sensitive to social-media posts, especially those from Keith Gill, a.k.a. Roaring Kitty.

🤑 Bitcoin Talks?

• Cohen, who’s the founder of pet food company Chewy, didn’t provide any context around why or how he met with Saylor. But given Saylor’s public image as the world’s biggest Bitcoin maxi (borderline fanatic), it probably had something to do with discussing Bitcoin and its adoption by GameStop.
• GameStop had previously forayed into digital assets when it introduced crypto wallets for nonfungible tokens. But it shut it down in 2023 due to “regulatory uncertainty.”

🛒 Strategy, the Bitcoin Hoarder

• If GameStop decides to dabble in Bitcoin, there’s no better company to learn from than Strategy. It’s the largest corporate holder of the orange token with a stack worth about $50 billion (more than 470,000 BTC). It’s all on Strategy’s balance sheet and there’s also a roadmap with $42 billion to be raised and spent on hoarding more Bitcoin.
• Strategy made its first purchase of the OG crypto back in 2020 when it was a software firm doing software stuff. Now it barely does anything other than jamming more BTC into its treasury. Could GameStop walk in Strategy's footsteps?