GameStop (GME) is plotting a high-stakes acquisition that might involve swapping out its bitcoin holdings for a bold bet in the consumer sector.
In an interview with CNBC last week, CEO Ryan Cohen said the firm plans to acquire a publicly traded consumer company that’s “very, very, very big” — one that could potentially boost GameStop’s valuation into the hundreds of billions. “It’s transformational,” Cohen said. “Not just for GameStop, but ultimately, within the capital markets… this is something that really has never been done before.”
The news has helped send GME’s stock price higher by more than 8% on Monday, bringing its year-to-date gain to 25%. That’s recouped much of GME’s loss since the company in late May disclosed the purchase of 4,710 bitcoin (then worth $428 million)
Cohen didn’t disclose the target but said he’s looking for a firm with an undervalued stock, strong fundamentals, and what he called a “sleepy management team.” The goal, he said, is to make the acquired business far more efficient using GameStop’s capital, governance, and operational expertise.
What makes Cohen’s ambition notable for crypto investors is that it might mark the end of GameStop’s foray into bitcoin.
Last week, blockchain data showed that GameStop had transferred that entire bitcoin stash (today worth just $368 million) to Coinbase Prime, raising immediate speculation that the company was preparing to sell those holdings.
Asked whether GameStop would liquidate its bitcoin to fund the acquisition, Cohen declined to confirm. “I’m not prepared to say,” he told CNBC, adding that the new strategy is “way more compelling than bitcoin.”