GameStop’s Bitcoin Play Ignites Stock Rally, But Key Questions Remain

GameStop (GME) shares surged 16% on Wednesday following the company’s announcement that it will begin buying bitcoin (BTC) as part of its treasury strategy. However, details on the scale and timing of the purchases remain elusive.

The gaming retailer, which reported $4.8 billion in cash reserves in its latest earnings report, had been the subject of speculation for weeks after CEO Ryan Cohen hinted at a possible bitcoin allocation. Matt Cole, CEO of Strive Asset Management and a GameStop shareholder, also pushed for the move, citing bitcoin’s long-term potential.

How Much Bitcoin Will GameStop Actually Buy?

The announcement set off a firestorm of speculation on social media, with many questioning just how much bitcoin GameStop intends to acquire.

Anthony Pompliano, CEO of Professional Capital Management, believes the allocation will be substantial. “Companies don’t undergo the rigorous process of changing their investment policy just to put 1% or 2% into bitcoin,” he said. “This signals a more meaningful commitment.”

Bitcoin advocate Michael Saylor, whose company MicroStrategy (MSTR) holds over 500,000 BTC, conducted an informal poll on X (formerly Twitter), with many respondents suggesting that GameStop would need to buy at least $3 billion worth of bitcoin to be taken seriously by the crypto community.

Following in MicroStrategy’s Footsteps?

While GameStop’s announcement drew comparisons to MicroStrategy’s aggressive bitcoin strategy, it’s unclear whether the company plans to accumulate BTC at the same pace. GameStop has used creative financial mechanisms, including debt sales, to build its cash reserves, but how much of that will flow into bitcoin remains unknown.

Despite the uncertainty, investors responded enthusiastically, pushing GameStop’s stock higher. However, some analysts remain skeptical.

Former bond trader Josh Mandell pointed out a potential disconnect between the announcement and the market reaction. “GameStop doesn’t actually own any bitcoin yet—just the promise of buying it. But in this market, that seems to be enough,” he said.