GameStop CEO buys shares after Bitcoin purchase

GameStop shares rose in after-hours trading after CEO Ryan Cohen bought 500,000 shares at $21.55 each, a move that boosted investor confidence. This $10 million purchase increased his total stake to over 37 million shares, or about 8.4% of the company . The purchase comes shortly after GameStop’s board approved a new investment policy allowing for Bitcoin investments , signaling a shift in strategy. Although the company holds $4.76 billion in cash, its announcement of a $1.3 billion convertible notes offering led to a 7% drop in the stock earlier, as investors weighed the potential dilution. GameStop first drew massive attention in early 2021 during the meme stock frenzy , when retail traders on platforms like Reddit's WallStreetBets triggered a historic short squeeze, sending its shares soaring. Since then, the company has been trying to reinvent itself, transitioning from a traditional video game retailer to a more tech-forward business. The hiring of Ryan Cohen, co-founder of Chewy, as chairman and later CEO, marked a turning point in that transformation. Despite recent volatility, Cohen’s stock buy appears to have reassured retail investors, pushing the stock 2.2% higher in the postmarket session.