GME

GameStop($GME) CEO Ryan Cohen Buys 500,000 Shares Amid Bitcoin Pivot, Contrasting With Other Officers' Sales

04/07/2025 22:54

GameStop ($GME) CEO Ryan Cohen has demonstrated strong confidence in the company by purchasing an additional 500,000 shares on April 3, 2025. This significant investment totaled $10.77 million at approximately $21.55 per share. Notably, this purchase occurred shortly after GameStop announced the addition of bitcoin as a treasury reserve asset. On the same day, board member Lawrence Cheng also acquired 5,000 shares at $21.54 per share, representing an investment of approximately $107,700. Cohen's substantial purchase has increased his ownership stake to 8.4%. This move is being interpreted as a powerful vote of confidence in GameStop's direction, particularly in relation to the company's recently announced bitcoin investment strategy. This insider buying stands in contrast to the selling pattern observed among other executives in recent months. Company officers Mark Haymond Robinson and Daniel William Moore have conducted several share sales from October 2024 through early April 2025. Robinson notably sold 11,000 shares for approximately $229,000 in October and another 4,687 shares on April 2. Cohen and Cheng's purchases come at a pivotal moment as GameStop undergoes significant strategic changes. The company issued $1.3 billion in convertible notes in late March to finance bitcoin acquisitions, signaling a diversification strategy from gaming retail toward digital assets. "Cohen's purchase demonstrates executive conviction in the company's new vision, particularly supporting plans to leverage bitcoin as a strategic asset," noted one securities analyst. GameStop closed 590 stores last year and plans additional closures in fiscal 2025, reflecting ongoing pressure on the traditional gaming retail business and suggesting the company is searching for new growth drivers. In 2023, the company recorded revenue of $5.27 billion and achieved profitability with net income of $6.7 million after years of losses. However, market skepticism about the sustainability of its business model persists. The stock has shown considerable volatility this year. After the bitcoin investment announcement on March 26, shares surged to $28.36 before plummeting below $22 the following day as investors questioned the effectiveness of the strategy. Wedbush analysts recently noted that GameStop's convertible bonds are trading at a significant premium to the company's assets, maintaining an 'underperform' rating with a $13.50 price target. Meanwhile, social media influencer 'Roaring Kitty' (Keith Gill), who previously had a substantial impact on GameStop's stock price, has reduced his activity and reportedly liquidated his stake in Chewy in October. Despite Cohen's significant purchase, market reaction to GameStop's future remains cautious. Recent declines in bitcoin prices add uncertainty to the cryptocurrency strategy, while challenges in traditional retail operations continue. "While Cohen's purchase is a strong signal, how GameStop maintains long-term competitiveness against online game distribution platforms and digital marketplaces remains a critical challenge," said another market expert. Following the insider purchase, GameStop shares rose approximately 4% on April 4, 2025, but faced downward pressure on April 7 due to broader declines in the cryptocurrency market. Investors are closely watching bitcoin price movements and anticipating additional strategic announcements from the company.

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