TLDR
- GameStop CEO Ryan Cohen announced plans for a “transformational” acquisition of a large publicly traded consumer company
- The company transferred its entire 4,710 BTC holdings (worth $368 million) to Coinbase Prime in January, sparking sale speculation
- Cohen described the acquisition strategy as “way more compelling than bitcoin” but hasn’t confirmed if BTC will be liquidated
- GameStop shares jumped over 8% following the announcement, bringing year-to-date gains to 25%
- The company originally purchased $428 million in bitcoin in May 2025, which has since lost value
GameStop shares climbed more than 8% on Monday after CEO Ryan Cohen revealed plans for what he calls a game-changing acquisition. The move has investors wondering if the retailer’s brief bitcoin experiment is coming to an end.
Cohen told CNBC the company plans to acquire a “very, very, very big” publicly traded consumer firm. He described the potential deal as transformational for both GameStop and the broader capital markets. “This is something that really has never been done before within the history of the capital markets,” Cohen said.
The announcement pushed GME shares to around $25.85. Year-to-date gains now stand at 25%.
Cohen is targeting a company with an undervalued stock and strong fundamentals. He specifically mentioned looking for firms with what he called a “sleepy management team.” The plan is to use GameStop’s capital and operational expertise to make the acquired business more efficient.
The CEO believes the acquisition could boost GameStop’s valuation into the hundreds of billions. “If it works, it’s genius. If it doesn’t work, it will be totally foolish,” he told CNBC.
Bitcoin Treasury in Question
The timing raises questions about GameStop’s bitcoin holdings. Blockchain data shows the company moved its entire 4,710 BTC stash to Coinbase Prime in January. The holdings are currently worth $368 million, down from the $428 million GameStop paid in May 2025.
When asked directly if GameStop would sell its bitcoin to fund the acquisition, Cohen wouldn’t confirm. “I’m not prepared to say,” he said. But he added that the new strategy is “way more compelling than bitcoin.”
The company updated its investment policy in March 2025 to allow bitcoin as a treasury reserve asset. At the time, GameStop joined other publicly traded companies treating the digital currency as a balance-sheet hedge.
Moving the entire bitcoin position to Coinbase Prime doesn’t guarantee a sale. However, the transfer combined with Cohen’s comments has led to widespread speculation on social media.
Market Implications
Greg Magadini, director of derivatives at Amberdata, told Decrypt that bitcoin’s recent pullback has brought prices near where many institutional buyers entered in 2025. “If GME finds a better use of capital, reallocating balance sheet away from bitcoin into an alternative use (such as an acquisition) could make sense,” he said.
Magadini noted that companies like MicroStrategy have financed bitcoin purchases with longer-term debt. This structure means lower prices don’t force them to sell. “This means lower prices don’t necessarily turn MSTR into a seller, even if GME selling bitcoin brings prices down momentarily,” he said.
Cohen hasn’t disclosed the acquisition target. He’s searching for a firm that fits his specific criteria of undervaluation and operational inefficiency. The deal would represent a sharp turn from GameStop’s crypto strategy.
The company’s bitcoin treasury has lost roughly $60 million in value since purchase. GameStop remains profitable despite the decline in its digital asset holdings. Shares had been down 30% from their May 2025 peak of $33 before this week’s rally.
Cohen’s interview marked the first time he publicly suggested the bitcoin investment might not be permanent. The CEO’s focus has clearly shifted to traditional mergers and acquisitions. The consumer sector acquisition remains his priority as GameStop looks to deploy capital in new ways.
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