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