GameStop Halts Bitcoin Purchases, Ryan Cohen Unfollows Key Accounts

GameStop has stopped purchasing Bitcoin since April 2023. This move sparked interest from crypto enthusiasts after Ryan Cohen, the company’s founder, unfollowed notable Bitcoin accounts including Bitcoin Magazine on X. The actions of Cohen have fueled debate about GameStop’s future direction regarding Bitcoin. Some speculate it signifies a shift in their approach while others believe this is simply a temporary pause. Reddit users shared screenshots highlighting the changes, sparking discussions on social media platforms. 2023 marked a turning point for GameStop as they integrated Bitcoin into their treasury reserve asset investment policy. This resulted in a $1.5 billion private offering, with a green shoe option fully exercised. However, despite having access to funds and expressing interest in Bitcoin, the company has not conducted further purchases since then. In June 2023, GameStop raised up to $2.7 billion through convertible notes. This capital could be allocated for Bitcoin purchases; however, it hasn’t been utilized. GameStop currently holds approximately $6.38 billion in cash and short-term investments. Despite this, the company continues to hold onto cash rather than acquiring Bitcoin. This situation has raised concerns from Bitcoin supporters who believe GameStop’s actions contradict its previous commitments. The stock is trading at $22.27 with a market cap of about $10 billion. Its decline reflects a significant drop from its peak, approximately 74% below its January 2021 highs. Many investors are skeptical of the company’s progress and are closely watching for potential Bitcoin-driven recovery.