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Business Insider
07-06-2025
- Business
- Business Insider
GameStop's (GME) Contrarian Market Path Leaves Wall Street Divided
For over five years, GameStop (GME) has moved beyond its roots as a traditional brick-and-mortar video game retailer. Its transformation began in 2021, when the meme-stock phenomenon catapulted the company into financial headlines and dramatically reshaped its investor base. Since then, GameStop has remained one of the most polarizing stocks in the market, driven by retail investor enthusiasm and a leadership overhaul led by activist investor-turned-CEO Ryan Cohen, who aimed to revitalize a business facing consistent losses and declining relevance. Confident Investing Starts Here: As of 2025, the company has eked out a modest profit and built a substantial cash reserve, largely through opportunistic equity offerings that capitalized on retail-driven momentum. GameStop is now pivoting toward digital assets, including a sizable bet on Bitcoin, supported by a recent $1.3 billion convertible bond issuance. Despite these bold moves, the company's core fundamentals remain uncertain. Revenue continues to decline, and its valuation remains difficult to justify through traditional financial metrics. Cohen, until recently, has maintained a low public profile, while insider buying activity has subtly supported ongoing investor interest. In my view, this highly unconventional situation—where the fundamentals are neither weak enough to justify a sharp sell-off nor strong enough to support a clear long-term value thesis—makes it difficult to adopt a definitive stance. As such, I'm maintaining a Hold rating for now. The CEO Who Finally Spoke Far from standard practice for a mid-cap publicly traded company, GameStop CEO Ryan Cohen rarely speaks publicly. Since taking the helm, he's never hosted an earnings call and has only given one interview since 2023. More recently, though, Cohen sat down for a rare conversation with crypto-focused media outlet The Crypto Times. In the interview, Ryan Cohen offered a candid assessment of GameStop's past, acknowledging that the company was in poor financial condition and experiencing significant losses when he first became involved. He attributed much of the decline to the broader industry shift from physical game sales to digital downloads—a trend that severely impacted GameStop's legacy business model. To reverse the company's trajectory, Cohen and his team implemented aggressive cost-cutting measures and instilled greater fiscal discipline. The strategy appears to have paid off: in Fiscal 2024, GameStop reversed a $313 million net loss from the prior year and reported a modest profit of $6.7 million. By Fiscal 2025, the company posted net income of $131.3 million, with operations approaching breakeven margins. Cohen also emphasized GameStop's strategic pivot toward collectibles, particularly in the trading card segment, spanning both sports and trading card games (TCGs). Most notably, he underscored that GameStop has become a leaner and more profitable retailer, despite the continued decline in quarterly revenue. One of the more revealing aspects of the interview was Cohen's candid account of his years-long battle to reshape the company. He made it clear that cleaning house—both at the executive and board levels—was critical to realigning GameStop with long-term shareholder interests. 'We got rid of all of that nonsense, and we focused on running the business profitably,' he said. Since becoming GameStop's largest shareholder in 2020, Ryan Cohen has played a central role in reshaping the company's leadership. He led a complete overhaul of the board, facilitated the departure of then-CEO George Sherman, supported the appointment of Matt Furlong as his successor, and ultimately assumed the CEO role himself in 2023. Meme Hype, Net Cash, and Bitcoin Bets As much as skeptics may be reluctant to acknowledge it, GameStop's management has made meaningful progress in steering the company toward profitability, despite significant challenges. Perhaps even more noteworthy is how Ryan Cohen and his team have successfully managed the complexities of the meme-stock phenomenon. Rather than resisting the volatility, they capitalized on it—executing timely equity offerings during momentum-driven rallies, such as those triggered by high-profile events like Y ouTuber Keith 'Roaring Kitty' Gill disclosing a sizable stake in the stock. In FY 2024 alone, GameStop raised an impressive $3.45 billion through stock sales, resulting in substantial shareholder dilution—nearly 50%, including that of Cohen himself. Prior to the offering, the company held a net cash position, with $921 million in cash against $616 million in debt. Following the capital raise, GameStop's net cash position rose sharply to $4.36 billion, according to its most recent filings. Following that, Cohen made a pivotal—though largely quiet—change to GameStop's strategy by revising the company's investment policy. Previously limited to fixed-income securities, the updated policy now permits broader equity investments, all under Cohen's direct oversight. This strategic shift set the stage for a bold move: an allocation to Bitcoin. As of the latest filings, GameStop holds 4,710 bitcoins, currently valued at approximately $513 million. In a recent interview, Cohen outlined his rationale, describing Bitcoin as a modern hedge against global currency debasement and systemic financial risk, similar to gold, but with distinct advantages. Unlike gold, he argued, Bitcoin offers superior portability, greater transparency, and more long-term upside. While gold's market capitalization hovers around $20 trillion, Bitcoin's remains under $2 trillion. Cohen also emphasized that the decision was his own, stating clearly that he's not following anyone else's playbook. A Calculated Dilution for Strategic Growth Back in March, GameStop announced a $1.3 billion private offering of convertible senior notes to be used for general corporate purposes, including buying more Bitcoin, somewhat following the playbook of companies like MicroStrategy (MSTR) when it comes to strategic moves to acquire Bitcoin. Instead of issuing traditional debt with fixed interest obligations, GameStop opted for convertible bonds—securities that allow investors to convert their holdings into equity. Each $1,000 bond can be converted into 33.4970 shares, implying a conversion price of approximately $29.85. Should the stock rise significantly above that level, bondholders are likely to convert, capturing upside potential while diluting existing shareholders. Notably, the bonds include no lock-up restrictions, meaning conversions can occur as soon as they become economically advantageous. This feature could contribute to added share dilution during rallies, potentially amplifying stock volatility. While this structure may put some pressure on near-term share performance, it provides GameStop with meaningful financial flexibility, thereby enhancing cash flow and avoiding the recurring burden of fixed interest payments. In essence, it's a strategic trade-off that Ryan Cohen appears willing to embrace in pursuit of long-term optionality. Is GameStop a Good Stock to Buy? Given the highly unconventional nature of GameStop's evolving fundamentals, most Wall Street analysts have largely stepped away from covering the stock. One of the few remaining voices is longtime skeptic Michael Pachter of Wedbush, who continues to maintain a Sell rating. In April, following the announcement of GameStop's Bitcoin investment, Pachter modestly raised his price target to $13.50 per share following the news that GameStop had invested in Bitcoin. GameStop's Remains a Puzzle Bears Just Can't Solve GameStop remains a company whose current market valuation—over $13.6 billion—is difficult to justify based on its underlying business fundamentals. Revenue continues to decline annually, operations are hovering around breakeven, and the company lacks a clearly defined strategy for long-term value creation beyond cost-cutting and opportunistic investments, such as its recent move into Bitcoin. If assigning a valuation, one could argue that the company's equity is largely supported by its sizable net cash position, with a modest premium for its gradually diminishing core business. That said, a mix of lingering—albeit more subdued—retail investor enthusiasm, an unconventional leadership approach, a bold Bitcoin allocation, and insider share purchases with limited disclosure have helped keep the stock trading at elevated levels. In a market where sentiment can override fundamentals, the stock remains unpredictable and difficult for bearish investors to challenge. Given the speculative nature of this setup and the absence of strong fundamental support, I'm maintaining a Hold rating.
Time of India
17-05-2025
- Business
- Time of India
Elon Musk becomes Kekius Maximus; sparks crypto surge
Billionaire Elon Musk has once again changed his display name—this time reverting to Kekius Maximus . Accompanying the update is a new profile picture, depicting Musk clad in armour with the title "Emperor Kekius Maximus" written on it. Musk briefly adopted the same name in December, likely drawing inspiration from the memecoin Kekius Maximus. And just like the last time, the name change has coincided with a sharp surge in the coin's value—rising by 142% as of 11:30 am on May 17, according to The Crypto Times. Back in December, the coin experienced an even more dramatic rally, spiking 497.56% within 24 hours. Who is Kekius Maximus? The character of Kekius Maximus blends the meme icon Pepe the Frog with Russell Crowe's heroic character Maximus, from the film Gladiator. The name also seems to be in reference to a meme-based cryptocurrency token called KEKIUS. Rooted in internet culture and heavily influenced by the 'Pepe' meme, KEKIUS has been gaining traction in the crypto market, as reported by The Times of India. After changing the name, Musk reposted a user's comment on X: 'Legacy Media trying to find Elon Musk on 𝕏, and suddenly he comes out like: 'My name is Kekius Maximus Reevius Memius, the Dogefather, and Commander of 𝕏 shitposters. Kekius Maximus is back!'" This update comes less than two weeks after Musk briefly changed his name to ' Gorklon Rust ', possibly a reference to Grok—the chatbot developed by his AI company xAI —and Rust, a programming language reportedly integral to xAI's backend. His profile picture at the time also changed to what appeared to be a distorted version of the Grok logo. The name Gorklon Rust may also have been a nod to the memecoin GORK on the Solana blockchain , which, like Kekius Maximus, saw a price spike—jumping nearly 100% in 24 hours, as reported by Outlook Business.
Economic Times
17-05-2025
- Entertainment
- Economic Times
Elon Musk becomes Kekius Maximus (again!); sparks crypto surge
Billionaire Elon Musk has once again changed his display name—this time reverting to Kekius Maximus. Accompanying the update is a new profile picture, depicting Musk clad in armour with the title "Emperor Kekius Maximus" written on it. Musk briefly adopted the same name in December, likely drawing inspiration from the memecoin Kekius Maximus. And just like the last time, the name change has coincided with a sharp surge in the coin's value—rising by 142% as of 11:30 am on May 17, according to The Crypto Times. Back in December, the coin experienced an even more dramatic rally, spiking 497.56% within 24 hours. Who is Kekius Maximus? The character of Kekius Maximus blends the meme icon Pepe the Frog with Russell Crowe's heroic character Maximus, from the film Gladiator. The name also seems to be in reference to a meme-based cryptocurrency token called KEKIUS. Rooted in internet culture and heavily influenced by the 'Pepe' meme, KEKIUS has been gaining traction in the crypto market, as reported by The Times of India. After changing the name, Musk reposted a user's comment on X: 'Legacy Media trying to find Elon Musk on 𝕏, and suddenly he comes out like: 'My name is Kekius Maximus Reevius Memius, the Dogefather, and Commander of 𝕏 shitposters. Kekius Maximus is back!'"This update comes less than two weeks after Musk briefly changed his name to 'Gorklon Rust', possibly a reference to Grok—the chatbot developed by his AI company xAI—and Rust, a programming language reportedly integral to xAI's backend. His profile picture at the time also changed to what appeared to be a distorted version of the Grok logo. The name Gorklon Rust may also have been a nod to the memecoin GORK on the Solana blockchain, which, like Kekius Maximus, saw a price spike—jumping nearly 100% in 24 hours, as reported by Outlook Business.
Time of India
17-05-2025
- Business
- Time of India
Elon Musk becomes Kekius Maximus (again!); sparks crypto surge
Billionaire Elon Musk has once again changed his display name—this time reverting to Kekius Maximus . Accompanying the update is a new profile picture, depicting Musk clad in armour with the title "Emperor Kekius Maximus" written on it. Musk briefly adopted the same name in December, likely drawing inspiration from the memecoin Kekius Maximus. And just like the last time, the name change has coincided with a sharp surge in the coin's value—rising by 142% as of 11:30 am on May 17, according to The Crypto Times. Back in December, the coin experienced an even more dramatic rally, spiking 497.56% within 24 hours. Who is Kekius Maximus? The character of Kekius Maximus blends the meme icon Pepe the Frog with Russell Crowe's heroic character Maximus, from the film Gladiator. The name also seems to be in reference to a meme-based cryptocurrency token called KEKIUS. Rooted in internet culture and heavily influenced by the 'Pepe' meme, KEKIUS has been gaining traction in the crypto market, as reported by The Times of India. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories After changing the name, Musk reposted a user's comment on X: 'Legacy Media trying to find Elon Musk on 𝕏, and suddenly he comes out like: 'My name is Kekius Maximus Reevius Memius, the Dogefather, and Commander of 𝕏 shitposters. Kekius Maximus is back!'" This update comes less than two weeks after Musk briefly changed his name to 'Gorklon Rust ', possibly a reference to Grok—the chatbot developed by his AI company xAI—and Rust, a programming language reportedly integral to xAI 's backend. His profile picture at the time also changed to what appeared to be a distorted version of the Grok logo. The name Gorklon Rust may also have been a nod to the memecoin GORK on the Solana blockchain , which, like Kekius Maximus, saw a price spike—jumping nearly 100% in 24 hours, as reported by Outlook Business.
Yahoo
20-03-2025
- Business
- Yahoo
Analyst uncovers unexpected source powering crypto industry: 'The future of bitcoin mining'
Bitcoin is often criticized for its high energy use, which contributes to planet-warming pollution. However, as The Crypto Times reported, one climate tech investor wants to get the word out that bitcoin derives the biggest share of its energy from a potentially unexpected source: hydroelectric power. Daniel Batten's findings show that the bitcoin network gets 23.12% of its energy from hydroelectric sources, with coal and gas sources following at 22.92% and 21.14%, respectively. This updates findings from the Cambridge Centre for Alternative Finance, which previously identified coal as bitcoin's largest energy source. However, the CCAF report confirmed that the estimate was limited, at least in part, by limited real-world data. According to The Crypto Times, Batten's difference comes from including off-grid mining operations using renewable energy. "The study by Daniel shows that the future of Bitcoin mining indeed belongs to hydro power," the Crypto Times said. While bitcoin operations don't directly produce pollution, their computing processes require massive amounts of electricity. That means when bitcoin data centers are connected to power grids relying mostly on dirty energy (such as coal, gas, and oil), it increases local air pollution, in addition to putting a strain on those grids. That problem is beginning to subside as more bitcoin mining operations strike deals to gain their own dedicated power sources — as Mara Holdings, whose advisory board includes Batten, recently did with a Texas wind farm — or to operate exclusively on excess energy from plants that have a habit of overproducing. Looking forward, it's crucial for the industry to continue to mitigate these environmental effects and get those coal and gas percentages down into the single digits. According to the North American Electric Reliability Corporation, reporting in late 2024, its estimates for electricity demand are rising faster than at any point in the last 20 years, and crypto and artificial intelligence data centers are complicating demand forecasts. Their ability to scale also strains energy grids and can make them less stable. Plus, higher demand generally means higher electricity bills for consumers. The good news is it benefits crypto miners to seek the lowest electricity prices, since their profit margins depend on it. Renewable energy is typically cheaper, and it's much cheaper once built, so increasing renewables is a win-win for crypto and the environment. Energy innovation is essential for this transition. For example, methane pollution from landfills — the third-largest source of human-related methane pollution in the U.S. — can be used for energy. So Vespene Energy developed technology that converts landfill gas on-site to power data processing centers, which offsets gas pollution and generates revenue at the same time. Inspiring such efforts is one example of how these energy-intensive industries can be part of the solution. Bitcoin mining can also support the transition to green energy with financial incentives, according to sources. A study in ACS Sustainable Chemistry & Engineering found that 32 planned renewable sites could generate $47 million in profit by supporting bitcoin mining before going commercial. Should the government ban gas stoves? Yes Only in new buildings Only in restaurants No way Click your choice to see results and speak your mind. We've seen some crypto investors prioritizing clean energy for mining facilities. However, as the world's largest crypto asset, bitcoin must make more progress for the industry to become sustainable. "Bitcoin relies on miners using powerful computational power to solve complex puzzles, consuming massive amounts of energy. Crypto mining's future relies on embracing sustainable and ethical practices to ensure it's not just green but genuinely clean," Tin Pei Ling, co-president of digital asset platform MetaComp, told Financial News. "It is in the industry's interest to reduce energy usage and its environmental impact as it evolves," added David Lenigas, chair of Vinanz, a London Stock Exchange-listed bitcoin mining firm. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
