The GME Effect: How GameStop’s Bitcoin Move Could Spark a Crypto Rally

Rumors were finally put to rest when video game retailer GameStop (GME) officially announced that it is planning to buy Bitcoin with corporate cash.

In response, the meme stock price initially jumped only to succumb to the uncertainty plaguing the stock market as President Donald Trump announced heavy tariffs.

The concerns over a global trade war have ignited a fresh wave of volatility in the market. 

Vibes and sentiments in the crypto market have already been severely negative and firmly in the ‘fear’ category ever since President Trump’s inauguration as the 47th President of the US on Jan. 20. That day, Bitcoin hit an all-time high (ATH) of $109,000 only to lose 23.1% of its value since then. 

This drawdown ended up obliterating altcoins and meme coins that have the total crypto market cap now sitting under $2.8 trillion, as per CoinGecko.

However, things may finally change when GME actually begins the purchase and adds BTC to the company’s balance sheet. Substantial buying pressure like this has the potential to change market sentiments completely and bring in a much-needed fresh wave of bullish momentum.

GameStop’s Bitcoin Investment Plans

Speculations that GME will buy Bitcoin first started when GameStop CEO Ryan Cohen met up with Michael Saylor, the executive chair of the biggest public company by BTC holdings. Cohen actually posted a photo of himself with Saylor on X, which got the crypto community talking.

CNBC also reported that GameStop is exploring investing in alternative asset classes, Bitcoin in particular, citing three unnamed sources. Just the consideration of the investment sent GME’s stock price soaring.

A couple of weeks after that, Strive CEO Matt Cole sent a letter to Cohen and encouraged GME to adopt BTC as a reserve asset. “We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier bitcoin treasury company in the gaming sector,” read the letter.

Now, finally, a week ago, GameStop announced that the board has unanimously approved a plan to buy Bitcoin with its corporate cash. The company currently holds about $4.8 billion in cash.

According to the video game retailer, a portion of its cash or future debt and equity issuances may be invested in BTC as well as U.S. dollar-denominated stablecoins. GameStop also said that it has not set a limit on the amount of crypto it would purchase.

This week, GameStop raised $1.5 billion via a convertible note offering and has already earmarked the funds to acquire Bitcoin. In a filing with the SEC, the video game retailer said it plans to use the net proceeds from the offering for “general corporate purposes, including the acquisition of Bitcoin.”

The Decentralized GME Revolution

The crypto industry is excited about this upcoming purchase and its impact on the broad crypto market. The GME Ethereum community is also thrilled about what’s ahead and conducted a space on X, discussing the potential of such a big move from GME. 

GME Ethereum is a digital representation of the GameStop saga that saw the value of this stock skyrocketing as retail came together to fight institutions and hedge funds. 

Built on the secure Ethereum blockchain, GME Ethereum operates in a completely decentralized ecosystem. There’s no centralized party in control here as developers have renounced their ownership, giving the community full control over the project.

Amidst the growing GME movement, GME Ethereum recently reached a milestone of 10,000 holders. 

Given the meme coin, GME Ethereum’s connection with the meme stock GME, crypto accumulation from the video retailer has the potential to send its prices higher. Already, it has been the most active meme coin on Ethereum, so even a tiny spark could ignite an explosive rally, sending GME Ethereum and the broader meme coin market into overdrive.