Gamestop (GME) shares quoted 16% more on Wednesday after the company announced that it would start buying Bitcoin (BTC) to add to its balance.
The game retailer informed to have $ 4.8 billion in cash during his profits of the fourth quarter on Tuesday. The company’s CEO, Ryan Cohen, weeks ago, worried about buying Bitcoin for GME’s balance. Matt Cole, CEO of Strive Asset Management, an owner of GME through his ETF, who urged the same thing.
Although Gamestop reported on Tuesday that a part of his cash will go to Stablecoins dominated by Bitcoin and the US dollar in the future, he did not reveal how much or the moment of any purchase.
The plan began a speculative frenzy on social networks: how much would Bitcoin Gamestop acquire?
The company’s allocation will probably be significant, according to Anthony Pompliano, founder and CEO of Professional Capital Management, who said that Gamestop would not go through the bureaucratic board’s approval process if he only planned to assign 1-2% of his cash in Bitcoin.
“President Ryan Cohen is likely to bet on Bitcoin as an asset of the balance,” Pompliano wrote in a note. “It only puts the time and energy to obtain the change in its investment policy if you are looking to put a material amount of your cash in Bitcoin.”
Pomp also pointed out that Cohen currently follows three accounts related to Bitcoin in X, which he sees as “behavior of a hardcore bitcoiner.”
According to a survey published by Michael Saylor, whose strategy (MSTR) has spent $ 33 billion acquiring more than 500,000 BTC, in X, his followers believe that Gamestop needs at least to have $ 3 billion in Bitcoin to “be respected by Bitcoiners.”
It is less clear if Gamestop plans to be so aggressive inn purchase Bitcoin as a strategy. The company has implemented many creative fund collection mechanisms to feed its war chest, including debt sales. But the BTC saga of the strategy began as a more humble cash reserve of $ 250 million generated by the cost savings of the Covid era.
The impulse of Gamestop shares can be resistant to Bitcoin’s pricing changes because the company has only said that BTC would buy, but it still does not possess any, Josh Mandell, a former bond merchant, reflected. He called the disconcerting situation in social networks.
“I will not ask anyone to make sense,” he said.
