GameStop‘s CEO, Ryan Cohen, has made headlines with his recent $10 million stock purchase. He bought 500,000 shares at $21.55 each, raising his total ownership to over 37 million shares, which is about 8.4% of the company. This move has boosted investor confidence, especially after GameStop announced plans to invest in Bitcoin.
Cohen’s purchase comes at a crucial time. GameStop’s board recently approved a new investment policy that allows for Bitcoin investments, indicating a shift in the company’s strategy.
Although GameStop has a strong cash position of $4.76 billion, the announcement of a $1.3 billion convertible notes offering caused the stock to drop by 7%. Investors were concerned about the potential dilution of their shares.
GameStop gained significant attention in early 2021 during the meme stock phenomenon. Retail traders on platforms like Reddit’s WallStreetBets sparked a historic short squeeze, causing the stock price to skyrocket. Since then, GameStop has been working to transform itself from a traditional video game retailer into a more technology-focused business.
