GameStop announced plans last week to buy Bitcoin because it is a “very profitable investment,” according to Ari10 CEO.
GameStop’s board of directors unanimously approved last week to use both corporate cash and future capital raises to purchase crypto assets, notably Bitcoin (BTC).
The short-term result? A 22% plunge in GameStop’s share price, its worst day since June. Not off to a good start. Cue the “You Died” screen.
A slight bounce on Monday now brings its year-to-date gain to negative 28.64%, although it is still up 82% from a year ago. But beneath the market volatility lies a longer-term strategy that could position GameStop for a turnaround.
According to commentary sent to crypto.news from Mateusz Kara, CEO of Ari10, the company’s Bitcoin move should be seen not as a potential turnaround in its core business, rather a calculated bet on a financial reinvention.
“GameStop has decided to invest in Bitcoin. Why? It’s simple: the company sees that, in the long term, it is a very profitable investment,” the CEO noted. “An example is how Strategy is making money on Bitcoin.”
Certainly the timing for GameStop was not ideal with Bitcoin’s recent price dip. But this does give GameStop favorable entry points, although investors my need some convincing.
It’s like buying the Master Sword with one heart left—risky, but potentially game-changing.
GameStop needs a new vibe
Indeed, there are strategic branding benefits, according to Kara. Investing in Bitcoin is “somewhat fashionable now” and “can improve GameStop’s image.” This is especially true with younger investors who may view the company as a more dynamic, crypto-aligned play and not a brick and mortar retailer whose path into oblivion has been obvious to many for at least 10 years.
Basically, they’re trying to evolve from Magikarp to Gyarados (shout out to my daughter for this one!)
GameStop’s shares may currently look cheap, but some of that is due to typical “buy the rumor, sell the fact” dynamics. Investors chased the initial Bitcoin speculation but ran away just as fast once the debt-funded plan became official.
Trump to the rescue?
Uncertainty tied to Donald Trump’s evolving economic policies, particularly tariffs, also continues to weigh on broader market sentiment, a statement Kara doesn’t seem to agree with.
“In the long run, U.S. policy may raise Bitcoin’s valuation—which will contribute to GameStop’s share price,” the CEO said.
As for whether this move makes GameStop the next MicroStrategy Strategy, that’s far from certain. In terms of legacy stock market-listed companies hoarding Bitcoin, Strategy is the OG and everyone else is copying. It’s like everyone suddenly trying to be the main character in a Final Fantasy game.
Unlike Strategy, GameStop is already trading at a hefty premium to its cash holdings. But with a refreshed narrative, retail loyalty, and now a Bitcoin bull case, the original meme stock may still have the ability to charge higher.
Or maybe not. Press F to pay respects.
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