Shares of GameStop (GME) have jumped 7% higher after company CEO Ryan Cohen posted a photo online of him and Strategy (MSTR) Chairman Michael Saylor.
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Strategy, until recently known as MicroStrategy, is the world’s largest corporate holder of Bitcoin (BTC). The photo has raised speculation that GameStop could be pushing into crypto investing as well. Cohen has said previously that GameStop wants to use excess cash to make strategic investments in stocks and other securities.
Cohen uploaded the photo on X, raising speculation that GameStop is planning to enhance its strategy around cryptocurrencies. GameStop previously offered crypto wallets that let users manage their crypto and nonfungible tokens (NFTs). However, the company shut that service down in 2023, citing “regulatory uncertainty” and other concerns around digital assets.
Crypto Bets
Cohen, who earlier co-founded online pet supplier Chewy (CHWY), initially bought shares in GameStop in 2020, joined the company’s board in 2021, and more recently became the CEO. GME is, of course, a notorious meme stock and popular on the WallStreetBets Reddit page.
Cohen was expected to turnaround GameStop’s struggling brick-and-mortar video game retail business. But the company continues to struggle financially as video game purchases migrate online and to digital downloads. Trading in GME stock remains volatile.
Like GameStop and Ryan Cohen, Michael Saylor and his company Strategy has a loyal fan base of retail investors who cheer as the company adds to its ever growing Bitcoin holdings. Strategy currently holds about $47 billion worth of BTC on its balance sheet, about 2.5% of the available supply.
GME stock has risen 80% over the last 12 months.
Is GME Stock a Buy?
Currently only one analyst follows GME stock, Wedbush’s Michael Pachter. He has a price target on the stock of $10, which is 62.14% below where the shares currently trade.
