GameStop's Crypto Surge: A 50% Rally After Cohen's Saylor Meetup

GameStop (GME) shares surged by a staggering 50% on Monday, February 11, 2025, following a weekend social media post by CEO Ryan Cohen. The post featured a picture of Cohen with Michael Saylor, the co-founder and chairman of MicroStrategy (MSTR), the largest corporate holder of Bitcoin (BTCUSD). This encounter sparked speculation that GameStop may be planning a move into the crypto space, resonating with its core audience of retail investors and traders.



The photo of Cohen and Saylor together drew over 1,600 responses on social media, with many users speculating that it could be an indication that GameStop is considering entering the cryptocurrency space. Separately, a new regulatory filing from MicroStrategy revealed that the company bought even more Bitcoin last week, adding to its already substantial holdings of 478,740 bitcoins.

GameStop's stock price has experienced significant volatility in recent years, with numerous instances of substantial price movements. In the past year alone, the stock has had 54 moves greater than 5%, indicating its extreme volatility. One of the most notable moves occurred 9 months ago when the stock gained 119% as meme stocks, including AMC Entertainment, Newegg Commerce, and Beyond, also surged. This surge coincided with the return of the famous Wall Street Bets trader Keith Gill (Roaring Kitty) to Twitter after three years, suggesting a growing interest of retail investors in the stock market.

The recent surge in GameStop's stock price can be attributed to various factors, including the company's exploration of cryptocurrency and blockchain technologies. In 2022, GameStop established a cryptocurrency wallet, which sent its share prices skyrocketing for days after the launch. Additionally, the company has been closing several stores in the US, often with little to no warning, as it shifts its focus towards digital sales and online gaming. Since 2020, GameStop has shut down more than 700 stores, with the COVID-19 pandemic heavily weighing on its profits and consumption shifting towards online sales and digital-only access to games.

GameStop's potential entry into the crypto space could have a significant impact on its core gaming business and competitive position in the market. By attracting a new customer base, enhancing customer loyalty, generating additional revenue streams, demonstrating innovation, and opening up opportunities for partnerships, GameStop could strengthen its position in the market and better compete with other gaming retailers and tech companies.

In conclusion, GameStop's stock price has experienced significant volatility in recent years, with numerous instances of substantial price movements. The recent surge in GameStop's stock price can be attributed to various factors, including the company's exploration of cryptocurrency and blockchain technologies, its shift towards digital sales and online gaming, and investor speculation about its potential entry into the crypto space. GameStop's potential entry into the crypto space could have a significant impact on its core gaming business and competitive position in the market, potentially enhancing its competitive position in the market.