This is Why Gamestop's Stock Has Been in Play Again. It's Not a Meme This Time

GameStop’s stock continued its upward momentum on Friday, fueled by growing recognition of the company as a play on bitcoin. In premarket trading, GameStop shares rose 1.6%, reaching their highest level in four months.

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This follows a strong 10% gain in the previous session. Interestingly, this surge wasn’t sparked by any direct company announcements. Instead, it coincides with a sharp rally in bitcoin prices.

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Bitcoin recently reached new all-time highs, with an intraday peak of $111,986.44 and a record closing price of $111,226.68 on Thursday, according to Dow Jones Market Data. As of the latest trading, bitcoin was priced around $110,773. The dramatic rise in the cryptocurrency’s value has boosted investor interest in companies associated with digital assets, and GameStop is now increasingly viewed as one of them.

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Earlier this year, GameStop made a strategic shift to incorporate bitcoin into its financial operations. The company’s board unanimously approved a change to its investment policy, allowing it to hold bitcoin as a treasury-reserve asset. This development wasn’t entirely unexpected, as speculation around GameStop’s involvement with cryptocurrencies had already been circulating, particularly due to CEO Ryan Cohen’s growing interest in the sector.

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Cohen further fueled this speculation in February by sharing a photo of himself alongside Michael Saylor, executive chairman of MicroStrategy Inc.—a company well known for its massive bitcoin holdings. MicroStrategy, operating under the name Strategy, adopted bitcoin as its main treasury asset back in 2020 and has since become a prominent corporate face of crypto investment. Cohen’s public alignment with Saylor reinforced the idea that GameStop was preparing to dive deeper into the world of digital currency.

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GameStop’s 10% jump on Thursday marked its largest single-day percentage gain since April 4, when it rose by 11.3%. With bitcoin remaining strong, there may be additional upside potential for GameStop’s stock. In May alone, bitcoin has surged 17.6%, while GameStop shares have advanced 10.8% over the same period, suggesting a correlation between the two.

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Investor sentiment also appears to be turning positive. On Thursday, GameStop was the second most-discussed stock on Stocktwits, a popular online community for traders and investors. According to the platform, sentiment toward the stock shifted decisively to “bullish,” reflecting growing enthusiasm among retail investors.

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GameStop isn’t new to dramatic market moves. The company gained massive attention in 2021 during the meme-stock rally, when retail traders sent shares of companies like GameStop and AMC Entertainment soaring in defiance of Wall Street expectations. While GameStop capitalized on this momentum, the underlying business has faced challenges in recent years, including falling sales and increasing pressure from digital gaming platforms and streaming services.

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Despite these headwinds, GameStop has shown some signs of financial stability. In March, the company posted its third consecutive quarterly profit for its fiscal fourth quarter. Even more impressive was the dramatic improvement in its balance sheet.

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GameStop ended the quarter with $4.775 billion in cash, cash equivalents, and marketable securities — a significant jump from the $1.199 billion it reported at the same point the year before. This cash-rich position offers the company some flexibility as it explores new strategies, including those tied to digital assets like bitcoin.

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However, despite the recent rally, GameStop’s stock is still down 1.5% so far in 2025 through Thursday. In contrast, bitcoin has had a stellar year, with the Coindesk Bitcoin Price Index (XBX) climbing 18.83% year to date, according to Dow Jones Market Data. This gap underscores why investors might be increasingly drawn to GameStop: it offers a way to gain exposure to the crypto market without directly holding bitcoin.

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In conclusion, GameStop's recent stock surge appears to be largely driven by bitcoin's meteoric rise and the company’s evolving identity as a crypto-friendly business. While no new corporate developments have been announced, the strategic addition of bitcoin to its treasury assets and the public engagement of its CEO with key crypto figures have positioned GameStop as a proxy for bitcoin’s performance. With strong investor sentiment and a healthier financial foundation, GameStop may continue to attract attention as long as interest in cryptocurrencies remains high.

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