GameStop’s Crypto Pivot Sparks Online Frenzy Amid 16% Stock Rally

GameStop’s Bold Bitcoin Move Sends Stock Soaring 16% Amid Speculation

GameStop (GME) shares surged 16% on Wednesday after the company announced plans to allocate a portion of its $4.8 billion cash reserves into bitcoin (BTC) and stablecoins.

During its fourth-quarter earnings report on Tuesday, the gaming retailer confirmed its substantial cash holdings but left investors guessing about the exact size and timing of its bitcoin purchases. CEO Ryan Cohen had previously hinted at a potential BTC allocation, with Matt Cole, CEO of Strive Asset Management and a GameStop shareholder, publicly supporting the move.

How Much Bitcoin Will GameStop Buy?

The announcement set off a wave of speculation across social media, with many debating just how deep GameStop’s bitcoin commitment will go.

Anthony Pompliano, CEO of Professional Capital Management, believes the investment will be significant. “Companies don’t go through the trouble of securing board approval just to put a tiny fraction of their cash into bitcoin,” he said. “Ryan Cohen is likely making a big bet here.”

Pompliano also pointed out that Cohen follows several bitcoin-related accounts on X (formerly Twitter), interpreting this as a sign of strong personal conviction in the asset.

Meanwhile, bitcoin advocate Michael Saylor—whose company, MicroStrategy (MSTR), has acquired over 500,000 BTC—ran a poll on X asking how much bitcoin GameStop should buy to gain credibility in the crypto community. The consensus: at least $3 billion.

A Strategic Shift or a Speculative Play?

It’s still unclear whether GameStop intends to follow in MicroStrategy’s footsteps with an aggressive BTC accumulation strategy. While the retailer has employed creative fundraising tactics, including debt sales, its exact approach to crypto investment remains uncertain.

Despite the lack of specifics, GameStop’s stock rally suggests that investors are already pricing in the potential impact. However, some market observers remain skeptical.

Former bond trader Josh Mandell summed up the sentiment on social media: “GameStop stock is pumping on an announcement, not an actual bitcoin buy. The market never fails to surprise.”