GameStop is making waves again. The video game retailer’s stock surged 10% in after-hours trading on Tuesday after announcing plans to build a Bitcoin reserve. This move places GameStop alongside MicroStrategy, Tesla, and Metaplanet, companies that have added BTC to their balance sheets.
Market analysts are now speculating whether this Bitcoin strategy could fuel another GameStop stock rally. Over the past year, GME has climbed 63%, rebounding from its $11 support level to $27.50. If momentum builds, the stock could retest its 2021 high of $81.
How Much Bitcoin Will GameStop Buy?
According to CNBC, GameStop plans to allocate part of its $4.8 billion cash reserves to Bitcoin and stablecoins. The company confirmed this in a statement:
GameStop’s fourth-quarter earnings also revealed a fivefold increase in cash reserves. As of February 1, the company held $4.77 billion, up from $921.7 million the previous year. The retailer reported $1.283 billion in Q4 net sales and $3.823 billion for fiscal 2024.
These financials, combined with the Bitcoin investment plan, could act as catalysts for further stock price growth.
Following MicroStrategy’s Bitcoin Playbook
GameStop’s interest in Bitcoin first sparked speculation in February, leading to an uptick in its stock price. The excitement grew when CEO Ryan Cohen shared a photo with MicroStrategy’s Michael Saylor, a major Bitcoin advocate.
Now, 40 days later, GameStop has officially confirmed its Bitcoin acquisition strategy, mirroring MicroStrategy’s approach. Earlier this week, Michael Saylor revealed that MicroStrategy purchased 6,911 BTC, bringing its total holdings to 506,137 BTC—roughly 2.4% of Bitcoin’s supply.
Companies like MicroStrategy and Metaplanet have seen massive shareholder returns following their Bitcoin purchases. If GameStop follows a similar path, its stock could experience significant gains in the coming year.
