GameStop CEO Ryan Cohen Discusses Bitcoin Strategy and Crypto Payments

GameStop CEO Ryan Cohen Details Bitcoin Strategy and Crypto Payment Plans

A Measured Approach to Bitcoin Investment

GameStop CEO Ryan Cohen has outlined the company’s distinctive approach to Bitcoin and cryptocurrency, emphasizing a strategy that diverges from the aggressive treasury accumulation models adopted by firms such as MicroStrategy. Speaking on CNBC’s Squawk Box, Cohen clarified that GameStop’s investment in Bitcoin is intended as a hedge against inflation and global monetary expansion rather than a commitment to large-scale, ongoing purchases.

Cohen referenced the company’s May acquisition of 4,710 bitcoins, valued at approximately $512 million at the time, describing the investment as a cautious and opportunistic move. “We made an investment of just over $500 million in Bitcoin, and I look at it as a hedge against inflation and global money printing,” he said. He added, “We’ll see what happens,” signaling a willingness to adapt based on market conditions rather than pursuing an aggressive accumulation strategy.

The CEO highlighted GameStop’s robust financial position, noting a balance sheet strengthened by over $9 billion in cash and marketable securities. This financial foundation supports a prudent capital deployment philosophy. “We will deploy that capital responsibly as I would my own capital, and only look for opportunities where the downside is limited and there’s a lot of upside,” Cohen explained.

Context Within the Corporate Crypto Landscape

GameStop’s Bitcoin investment comes amid increased scrutiny of corporate cryptocurrency strategies. Analysts have expressed skepticism about the sustainability of Bitcoin treasury models, particularly as companies like MicroStrategy experience significant unrealized losses despite occasional stock gains. MicroStrategy, for instance, recently reported a 3% rise in its stock price despite a $5.9 billion unrealized loss on its Bitcoin holdings and is currently embroiled in litigation over alleged stock misrepresentation.

The broader cryptocurrency sector continues to evolve, with milestones such as Coinbase’s recent inclusion in the S&P 500 reflecting growing mainstream acceptance. However, regulatory uncertainty remains a significant factor influencing corporate decisions. GameStop itself previously explored blockchain ventures, launching an NFT marketplace and a proprietary crypto wallet. Both initiatives were discontinued between late 2023 and early 2024, primarily due to regulatory challenges in the United States.

Exploring Cryptocurrency Payments for Trading Cards

Looking forward, Cohen revealed that GameStop is considering the acceptance of cryptocurrency payments for trading card sales, potentially expanding its engagement with digital assets beyond Bitcoin holdings. “There’s an opportunity to buy trading cards, and do so using cryptocurrency,” he stated, while emphasizing that the company will assess actual customer demand before proceeding. When asked about which cryptocurrencies might be accepted, Cohen responded, “We’re going to look at all cryptocurrencies,” indicating an open approach to various digital currencies.

GameStop recently increased its fundraising efforts to $2.7 billion, which could provide additional capital for Bitcoin acquisitions, though Cohen refrained from detailing specific future plans. “We’ll be opportunistic,” he reiterated.

As GameStop continues to refine its crypto strategy, the company remains focused on maintaining profitability and operational stability. Having shifted its core business toward trading cards and collectibles and reduced its physical store footprint, GameStop’s next steps in cryptocurrency will likely be influenced by evolving market demand and regulatory developments.