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GameStop to ape Strategy’s Bitcoin Reserves plan – Will GME explode? 

2min Read

Will corporate BTC strategy FOMO boost the crypto’s value or signal its top?

GameStop to ape Strategy's Bitcoin Reserves plan - Will GME explode? 
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  • GameStop plans to copy Strategy’s Bitcoin playbook
  • Will meme stock GME explode like Metaplanet and MSTR did? 

On Tuesday, American video game retailer GameStop’s (GME) board ‘unanimously’ approved adopting Bitcoin [BTC] reserves as part of its corporate strategy. As a result, it would join the growing list of public companies that have copied Strategy’s (formerly MicroStrategy) BTC playbook to boost shareholders’ value. 

The update came a few weeks after several figures, including Strive Asset Management CEO Matt Cole, urged the firm’s CEO, Ryan Cohen, to buy BTC with its excess cash reserves. 

Market reactions

There were mixed reactions to the update though. Michael Saylor, the pioneer of BTC strategy, termed it a “step in the right direction.” According to reports, the gaming firm has $4.6 billion in cash reserves right now. 

In fact, according to GameStop’s 10-K filing with the SEC, its groundwork for BTC adoption mirrors Strategy’s (MicroStrategy), including through debt and stock issuance. 

Bitcoin Reserve

Source: SEC (excerpt of 10-K filing) 

According to Bitcoin Treasuries, 88 public companies control a whopping 665,030 BTC as part of their Bitcoin strategy. In fact, they are the second largest category of BTC holders after funds like ETFs, which have over 1.29M BTC. 

Although some view the FOMO among companies as a net positive for BTC’s value due to growing demand, some had opposite opinions. According to analyst Checkmatey, the growing number of firms jumping on the bandwagon is a likely top signal. 

“I made a claim that zombie companies like Gamestop ‘pulling a Saylor’ as a get out of jail card would be a clear topping signal.”

That being said, most firms that have adopted this strategy have seen massive pumps on their stocks. Strategy’s MSTR, for example, has rallied by over 2000% since adopting BTC in 2020, outperforming the crypto by 3.3x. 

Similarly, Metaplanet’s stock pumped by 2,240% since adopting BTC in April 2024. Will investors in the meme stock GME benefit from a similar windfall trend? Well, that remains to be seen. However, the stock was up 10% slightly after the U.S market opened on Wednesday. 

Bitcoin reserve

Source: Google Finance

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Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
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