GameStop (GME) rallied as much as 9% on Monday after its chief executive Ryan Cohen shared a picture with Michael Saylor on X. Saylor is the chairman of MicroStrategy (MSTR) (now known as Strategy), a business intelligence firm based out of Tysons, Virginia that’s been buying Bitcoin (BTCUSD) since 2020.
Interest in GME shares is increasing today as investors wonder if Cohen’s picture with Saylor could mean the gaming merchandise retailer is gearing up to shift its focus to Bitcoin. Such a strategic shift could breathe new life into GameStop stock, just as it did in MSTR that has rallied close to 25 times since it first started buying Bitcoin at the peak of the pandemic.
GameStop Stock Rallies as Investors Anticipate Bitcoin Strategy
It’s reasonable to believe that GME could replicate the success that unraveled for MicroStrategy after it started loading up on Bitcoin because it’s already popular among retail investors.
Such an investor base is known to be rewarding of innovative and unconventional strategies.
If GameStop does indeed start to raise capital to put more BTC on its balance sheet, its investors could have a lot more to look forward to than another post from “Roaring Kitty” that potentially triggers the next short squeeze.
With a Bitcoin strategy, the New York-listed firm may be able to tap into the rising interest in crypto. In fact, it may emerge as more appealing for retail investors interested in gaining exposure to the world’s largest cryptocurrency.
Why? Because the $100,000 price tag on Bitcoin may be discouraging for many – but GameStop stock at about $27 is much more affordable and accessible for the retail investors.
What MSTR Tells Us About GME’s Potential Push into BTC
The example of MicroStrategy has taught investors that a Bitcoin proxy, which GME will essentially be, if it started buying Bitcoin, can actually outperform the underlying asset that it’s tied to.
Since 2020, when MSTR first started buying BTC, its share price has rallied well over 2,000% (yes, you read that right), versus only 700% for Bitcoin.
Put together, these factors and stats could significantly boost demand for GameStop shares if it followed MicroStrategy in its footsteps and tied its overall value to the “digital gold.”
Trump 2.0 Could Prove to Be a Catalyst for GameStop Stock
Now may be the right time for GameStop to build a strategy around Bitcoin because the digital asset is broadly expected to extend its gains rather significantly under the new U.S. presidential administration.
President Donald Trump seems to have every intention of making good on his promises of pro-crypto policies, given he has named crypto advocate Paul Atkins to lead the Securities and Exchange Commission.
More recently, the Republican leader even passed an executive order to set up a U.S. sovereign wealth fund aimed at investing in the future of the country, which may include BTC, according to Sen. Cynthia Lummis – chair of the Senate’s Digital Assets Subcommittee.
That’s part of the reason why Geoffrey Kendrick, the global head of digital assets research at Standard Chartered, expects Bitcoin to be worth $500,000 by the end of 2025.
What a BTC Rally May Mean for GME Shares in 2025
Institutional capital will continue to flow into the Bitcoin ETFs under the new U.S. government, which should prove “enough to drive BTC to $500,000 before Trump leaves office,” Kendrick argued in a recent note to clients.
So, if GME begins loading up on Bitcoin, and the price of the digital asset does indeed rally as hard as Standard Chartered expects, it could lead to substantial gains on GameStop’s balance sheet.
That’s why investors are reacting positively after Ryan Cohen shared a picture with Michael Saylor over the weekend. Despite today’s surge, GameStop stock is down about 15% in the year to date as of this writing.
