GameStop CEO Cohen Meets Bitcoin Billionaire Saylor: Crypto Investment Ahead?

GameStop (GME) shares surged 7% after CEO Ryan Cohen posted a photo on X with Michael Saylor, the chairman of Strategy (MSTR). The photo has sparked speculation that GameStop may be exploring investments in cryptocurrencies, given Strategy's status as the world's largest corporate holder of Bitcoin (BTC). Cohen has previously hinted at using excess cash for strategic investments in stocks and other securities.

GameStop had previously offered crypto wallets for managing cryptocurrencies and non-fungible tokens (NFTs), but shut down the service in 2023 due to regulatory uncertainty and other concerns. Cohen, who co-founded online pet supplier Chewy (CHWY) and joined GameStop's board in 2021, has been trying to turn around the struggling brick-and-mortar video game retailer. However, the company continues to face financial challenges as video game purchases shift online and to digital downloads, with GME stock remaining volatile.

Michael Saylor and Strategy have a loyal following among retail investors, who cheer as the company adds to its growing Bitcoin holdings. Strategy currently holds approximately $47 billion worth of BTC on its balance sheet, representing about 2.5% of the available supply. GME stock has risen 80% over the last 12 months.

Analyst coverage for GME stock is limited, with only one analyst, Michael Pachter of Wedbush, providing a price target of $10, which is 62.14% below the current share price.