GameStop CEO Buys $10.7 Million in GME Stock Amid Plans to Add Bitcoin to Treasury

GameStop’s Struggles Continue as CEO Makes Significant Investment in Company’s Stock

GameStop CEO Ryan Cohen has purchased $10.7 million in GME stock, eight days after the video game retailer announced its plans to add Bitcoin to its treasury reserve.

Cohen bought 500,000 Class A shares of GME at $21.55 per share, according to a financial disclosure file filed on April 3 with the Securities Exchange Commission. The executive now holds 8.4% of stock issued by GameStop, or 37,347,842 shares.

GameStop’s Stock Performance

GameStop’s stock closed at $23.49 on Friday, up more than 11%. Shares are down about 50% since June 6, a day before influencer “Roaring Kitty” reappeared online to share a screenshot of his GME holdings.

GameStop’s Plans to Add Bitcoin to Treasury

The purchase comes after GameStop unveiled plans to pour corporate cash into Bitcoin, taking a cue from Michael Saylor’s strategy. In a statement, the company said it aims to raise $1.3 billion for the purpose of buying Bitcoin through the sale of convertible senior notes, which would mature in 2030.

The plan makes GameStop one of several public companies to adopt Saylor’s Bitcoin-focused playbook in recent months, despite the fact that the value of the token has fallen 23% from its all-time-high price of roughly $108,000. Bitcoin was recently trading above $84,100, up nearly 3% over the past 24 hours – a rare upbeat note among risk-on assets that have plummeted following U.S. President Donald Trump’s draconian trade tariffs.

GameStop’s Struggles Continue

The retailer is preparing to snap up Bitcoin as it continues to struggle with consumer demand across most categories. GameStop’s net sales plummeted roughly 28% for the last three months of 2024 compared to the year-prior quarter, according to the company’s latest quarterly earnings statement.

The cooling sales follow a 12% slide in the company’s annual revenue to $10.546 billion over the three-year period ending in 2024. Amid its sales slump, GameStop also announced last month that it would shutter a “significant number” of its brick-and-mortar shops.

Conclusion

In conclusion, GameStop CEO Ryan Cohen’s significant investment in the company’s stock amid its struggles to stay afloat is a clear sign of his confidence in the company’s future. The addition of Bitcoin to the company’s treasury reserve is a bold move, and it will be interesting to see how this strategy plays out in the long run.

FAQs

• What is the significance of GameStop CEO Ryan Cohen’s investment in the company’s stock? Cohen’s investment is a clear sign of his confidence in the company’s future and a vote of support for the company’s strategy to add Bitcoin to its treasury reserve.
• What is GameStop’s plan to add Bitcoin to its treasury reserve? GameStop plans to raise $1.3 billion for the purpose of buying Bitcoin through the sale of convertible senior notes, which would mature in 2030.
• How has GameStop’s stock performed recently? GameStop’s stock closed at $23.49 on Friday, up more than 11%. Shares are down about 50% since June 6, a day before influencer “Roaring Kitty” reappeared online to share a screenshot of his GME holdings.
• What is the current price of Bitcoin? Bitcoin was recently trading above $84,100, up nearly 3% over the past 24 hours.
• Has GameStop announced any plans to reduce its brick-and-mortar presence? Yes, GameStop announced last month that it would shutter a “significant number” of its brick-and-mortar shops.