GameStop’s love affair with Bitcoin may be coming to an end.
“It’s transformational. Not just for GameStop, but ultimately, within the capital markets,” Cohen told CNBC. “This is something that really has never been done before within the history of the capital markets.”
“If it works, it’s genius. If it doesn’t work, it will be totally foolish,” he added.
“This means that there's an incentive for large corporations to protect themselves before others capitulate,” Magadini told Decrypt. “If GME finds a better use of capital, reallocating balance sheet away from Bitcoin into an alternative use (such as an acquisition) could make sense.”
According to Magadini, the bearish case for Bitcoin centers on the risk that the wave of corporate and institutional buying seen in late 2024 and 2025 could reverse, with former buyers turning into net sellers, flipping inflows into outflows, and potentially triggering a downward price spiral as falling prices force additional selling.
“Although this bearish scenario could happen, the market is likely aware of some of these dynamics, and this risk may already be priced into Bitcoin,” he said, adding that GME selling its Bitcoin doesn’t necessarily mean other large holders will as well.
“Companies like MSTR have financed their Bitcoin purchases with longer-term debt that isn't subject to margin liquidation like many exchange traders are accustomed to,” he said. “This means lower prices don't necessarily turn MSTR into a seller, even if GME selling Bitcoin brings prices down momentarily.”
GameStop did not immediately respond to Decrypt's request for comment.
