GameStop’s Bitcoin investment: A bold move or a risky gamble?

Remember when GameStop sent shockwaves through Wall Street in 2021, turning a struggling retailer into a meme stock legend? Well, they’re back at it-but this time, it’s not Reddit traders fueling the hype. It’s Bitcoin.

GameStop’s board just unanimously approved adding Bitcoin to its treasury reserves. No small dip, no half-measures-just straight-up converting corporate cash into BTC with no ceiling on how much they might buy. The result? The stock popped 15% instantly. But that’s just the beginning.

Why now?

GameStop isn’t exactly drowning in cash, but they did report a more than 100% jump in net income, reaching $131.3 million in Q4. While other retailers might use that to stabilize operations, GameStop is going all in on digital gold. Meanwhile, they’re still closing physical stores, signaling a broader pivot away from old-school retail.

And get this-they’re not just using their cash reserves. They openly stated they may use cash, equity issuances, and even future debt to acquire more Bitcoin. Translation? They’re willing to raise money just to buy more BTC. That’s a level of commitment rarely seen from traditional retailers.

Jim Cramer saw this coming?!

Yes, that Jim Cramer. Back in 2021, he tweeted (probably jokingly), “Bitcoin! Genius!!! GameStop needs to be a 5000-store bitcoin palace!!!” Turns out, he might’ve been onto something.

GameStop is now following the playbook of MicroStrategy, the company that transformed itself into a Bitcoin-holding giant. Michael Saylor, MicroStrategy’s CEO, turned his business into a de facto Bitcoin ETF-and GameStop may be looking to do something similar.

The bigger picture: Why this matters for crypto

Bitcoin briefly dipped below $87K after GameStop’s move, but there’s a bigger play at hand. The stock market has been shaky, the U.S. dollar just hit a 3-week high, and Trump’s looming trade tariffs are adding uncertainty to the mix.

Meanwhile, we’re seeing a regulatory shift in favor of crypto. Kentucky and Arizona just passed pro-crypto legislation, moving toward integrating digital assets into their financial systems. While Washington, D.C. is still figuring things out, individual states are racing to become blockchain hubs.

So why isn’t Bitcoin experiencing a major breakout? The answer could lie in traditional finance (TradFi) roadblocks. Institutional investors still face hurdles-cash-settled ETFs are inefficient for taxes, major banks limit direct BTC access, and derivatives markets lack regulatory clarity. Until these issues get resolved, the full-scale institutional shift into Bitcoin remains an open question.

Technical outlook: What’s next?

GameStop’s move highlights the evolving relationship between corporate strategy and digital assets. Whether this signals a broader shift in retail or remains an isolated experiment is yet to be seen. While regulatory developments and market sentiment will play a role in shaping the outcome, one thing is clear-companies are increasingly exploring new ways to allocate their resources in a rapidly changing financial landscape.

As the market digests GameStop’s latest move, the focus now shifts to how other corporations and institutions respond. Will more traditional retailers embrace digital assets, or will they take a more cautious approach? 

At the time of writing, Gamestop is showing signs of retracement after towering towards the $30 mark. Price is just above the 100-day moving average indicating that upside bias still persists. However, price breaching the upper bollinger band as RSI steadily rises towards 70, shows signs of overbought conditions. 

Key levels to watch should the stock slide are $24.00 and $22.49. Should upside pressure take control, the price target will be around $30.00.

As BTC-Gamestop hype ramps up, you can get involved and speculate on the price of gamestop stock with a Deriv MT5 account or a Deriv X account.