GameStop's New Identity: Mimicking Bitcoin's Trading Patterns

GameStop Trades More Like Bitcoin, Says Bill Gross

Legendary investor Bill Gross suggests GameStop (GME) is evolving, shedding its meme stock label. He observes the stock's behavior now “mimics Bitcoin,” indicating a shift in its market dynamics.

Gross recently told Business Insider that GameStop is “much less volatile” and no longer behaves like a meme stock, though he still considers it “a good candidate for option selling.” He noted its trading pattern, including rises in late 2024, dips in spring 2025, and a rebound in May, aligned with Bitcoin's trajectory.

GME has traded between $20 and $35 over the past 12 months, a significant shift from its earlier volatility, when it surged from $1 in the summer of 2020 to an intraday peak of $121 in January 2021.

In May, GameStop reached a 12-month high above $35, preceding the company's announcement of its initial Bitcoin investment. GameStop’s 4,710 BTC are currently valued at approximately $539 million.

However, the stock has since declined, closing at approximately $23 on Wednesday, down 27% year-to-date, according to Yahoo Finance data.

Gross stated he is avoiding new meme stocks like American Eagle, even after profiting from shorting GameStop and AMC during the 2021 trading surge. He observed that retail traders now focus on tech giants Microsoft and Meta, up 30% and 25% this year, respectively, fueled by artificial intelligence optimism.

GameStop's Future: Bitcoin Investments and Crypto Payments?

GameStop, which holds over $9 billion in cash and marketable securities, plans to continue investing in Bitcoin and other digital assets.

CEO Ryan Cohen has outlined a strategy of selective engagement when the risk-reward balance is favorable. Cohen has also raised the possibility of accepting crypto payments for trading cards, pending customer interest.