Written by Bryan Lutz, Editor at Dollarcollapse.com:
While everyone is wondering if they should be stocking up on cash, GameStop continues to stack its pile of mad loot higher and higher.
After slumping sales, GameStop’s CEO has decided to sell to 203 Canadian stores.
Which would add millions more to their $4.6 Billion cash pile, but what’s he going to do with it all?
Shareholders want to know.
Western Standard reports:
GameStop to sell Canadian stores citing ‘high tax, Liberal, Socialist, progressive wokeness’
“Shortly after posting a news release to its web site, Cohen took to Twitter (“X”) inviting potential buyers to express interest via email, adding: “High taxes, Liberalism, Socialism, Progressivism, Wokeness and DEI included at no additional cost if you buy today!…
…The move is part of a broader strategy under Cohen’s leadership to streamline GameStop’s operations.
Since assuming the role of CEO in 2023, Cohen has focused on reducing costs and enhancing long-term profitability, which includes downsizing the company’s physical store footprint.
Prior to the announcement, GameStop operated 203 stores in Canada and 647 across Europe.
That’s notwithstanding that physical sales of video games are headed the same direction as VHS video stores like Blockbuster.
GameStop’s financial performance has been under scrutiny, with the company reporting a net income of USD$17.4 million in its third quarter, a turnaround from a loss in the same period the previous year.
However, sales declined to $860.3 million, indicating ongoing challenges in the ‘evolving retail’ landscape.”
So, the question for shareholders is…
“What will GameStop do with all their cash?”
Since so many retail operations are shuttering their doors and selling off their inventory, they may now have the opportunity to transfer their cash into Bitcoin, or other assets like Microstrategy has done.
GameStop would be the first example of this…
And an ironic one at that, yet it is not far from the truth.
Market Insider reports:
GameStop’s (GME) Untapped $4.6B Cash Pile Leaves Investors Bemused
“It’s been four years since GameStop (GME) stock surged, and the concept of a meme stock was launched.
While the stock has retreated, the company was able to cash in on its surging share price and now sits on $4.6 billion in cash, representing around 40% of the market cap.
The problem is that GameStop hasn’t been putting that money to work.”
When hedge funds bet billions against the collapse of GameStop, a small, under-the-rader reddit thread yet, well-known by the tech industry ignited the world’s first memestock.
People dumped millions into the stock because they were tired of the financial sharks the fiat world has built.
So, hedge funds lost, and the internet won.
The point is, GameStop may now have even more reason to become the world’s first “Great Retail Bankruptcy Trade” in spite of the failing fiat system.
Just a few weeks ago, GameStop’s CEO met with Michael Saylor, MicroStrategy’s CEO.
Speculation went wild over GameStop using their cash to buy up Bitcoin…
Then the stock shot up.
Now, a few weeks later, Bitcoin seems to finally be selling off.
CNBC reports:
Bitcoin drops to a 3-month low below $90,000 in risk-off move
“Bitcoin has fallen through the $90,000 level, weakened by sell pressure in equities as the crypto market awaits its next catalyst.
The price of bitcoin was last lower by 7% at $87,220, according to Coin Metrics. Earlier, it slid as low as $85,899.99, its lowest level since November.
Tuesday’s decline puts the blue chip coin about 20% off its all-time high reached on President Donald Trump’s inauguration day.”
Once Bitcoin bottoms out again this cycle, I can see GameStop gobbling up cheap Bitcoin.
This happened for Saylor’s MicroStrategy, and the stock continues to grow. Just wait for the next few years, when it jumped to Bitcoin hit $1M per coin.
It’s speculative, but it looks as though it could happen soon.
