GameStop CEO buys shares after Bitcoin purchase

GameStop CEO buys shares after Bitcoin purchase

GameStop shares rose in after-hours trading after CEO Ryan Cohen bought 500,000 shares at $21.55 each, a move that boosted investor confidence. This $10 million purchase increased his total stake to over 37 million shares, or about 8.4% of the company.

The purchase comes shortly after GameStop’s board approved a new investment policy allowing for Bitcoin investments, signaling a shift in strategy. Although the company holds $4.76 billion in cash, its announcement of a $1.3 billion convertible notes offering led to a 7% drop in the stock earlier, as investors weighed the potential dilution.

GameStop first drew massive attention in early 2021 during the meme stock frenzy, when retail traders on platforms like Reddit's WallStreetBets triggered a historic short squeeze, sending its shares soaring. Since then, the company has been trying to reinvent itself, transitioning from a traditional video game retailer to a more tech-forward business. The hiring of Ryan Cohen, co-founder of Chewy, as chairman and later CEO, marked a turning point in that transformation.

Despite recent volatility, Cohen’s stock buy appears to have reassured retail investors, pushing the stock 2.2% higher in the postmarket session.