Ryan Cohen, CEO and chairman of video game retailer GameStop (NYSE: GME), has increased his stake in the company by acquiring an additional 500,000 shares, spending approximately $10.78 million. The purchase follows the company’s bold move to adopt bitcoin (BTC) as a treasury reserve asset.

According to a filing submitted on Thursday to the U.S. Securities and Exchange Commission (SEC), Cohen bought the shares at an average price of $21.55 each. This new acquisition brings his total holding to 37,347,842 shares, which now represents around 8.4% of GameStop’s total outstanding shares.

The timing of Cohen’s investment aligns closely with GameStop’s recently approved plan to allocate part of its cash reserves into bitcoin. The board gave the green light to the strategy in late March, marking a significant shift in the company’s financial management.

$1.5 Billion Raised to Fuel Bitcoin Strategy

To fund this new direction, GameStop earlier this week finalised a $1.5 billion capital raise through the issuance of convertible notes. The bulk of the raised capital is expected to go toward purchasing bitcoin, aligning GameStop with other major firms embracing cryptocurrency as part of their corporate treasuries.

The move echoes the strategies of tech-forward companies like MicroStrategy and Tesla, both of which have previously made headlines for integrating bitcoin into their balance sheets. It also signals Cohen’s strong belief in digital assets as part of a long-term value creation plan.

Market Reaction Mixed Amid Wider Selloff

Despite the strategic developments and insider buying activity, GME shares saw a more than 7% drop on Thursday. The decline came amid a broader market selloff sparked by geopolitical tensions and economic concerns following tariff announcements from former U.S. President Donald Trump.

However, GME shares showed signs of recovery in premarket trading on Friday, buoyed by the news of Cohen’s personal investment and optimism surrounding the company’s crypto ambitions.

Cohen, who took the helm of GameStop during its meme-stock-fuelled transformation in 2021, has long been a key figure in efforts to reinvent the struggling retailer. His decision to double down on the company’s shares may be viewed as a vote of confidence in GameStop’s future direction, especially as it ventures into digital finance and decentralised technologies.

A Strategic Shift or Speculative Gamble?

While supporters applaud the bitcoin acquisition plan as a modernisation strategy, critics warn of the volatility inherent in crypto markets. Bitcoin’s price has remained highly unpredictable, and the integration of digital assets into corporate balance sheets still carries significant regulatory and financial risks.

Nonetheless, GameStop’s alignment with cryptocurrency trends could attract a younger, tech-savvy investor base—many of whom were instrumental in the stock’s meteoric rise during the retail trading frenzy of 2021.

As the company continues to navigate transformation amid a rapidly evolving retail and financial landscape, Cohen’s substantial reinvestment is likely to remain under close watch by investors and analysts alike.