GameStop Stock Targets $45 After Announcing Bitcoin Treasury

GameStop experienced another wave of intense price swings this week after news emerged that the company had added Bitcoin to its corporate treasury.  Ahead of the announcement, the stock surged further higher than 6%, surpassing the $35 mark in the course of Monday’s trading.

As reported by FrankNez, GameStop's trading volume surged to 32 million shares, indicating a revival of enthusiasm among some retail investors. Some analysts and community members even predicted a potential rally toward $45, driven by momentum in both the crypto and meme stock markets.

The rally was also supported by the company’s recent $1.5 billion bond offering, which added liquidity to GameStop’s balance sheet. Moreover, with Deutsche Bank raising its investment in the firm, institutional support expanded, indicating a wider interest that extended beyond retail traders.

From Rally to Reversal

However, GameStop's rally was short-lived. After the initial excitement over the Bitcoin news, the stock reversed course, falling nearly 10% to close at $31.62 by Wednesday. 

This came after early morning losses of over 3%, despite a brief premarket gain of 7%. The sharp decline followed skepticism about the timing of GameStop’s Bitcoin purchase.

Critics noted that the company bought Bitcoin while prices were already high, raising questions about the strategic value of the move.

According to a Barron’s report, the Bitcoin purchase drew comparisons to MicroStrategy’s similar strategy, though some analysts believe GameStop’s move lacked the long-term planning seen in other corporate crypto plays.

Earnings Report Next Week

Investors now see each quarter earnings report release coming from GameStop, scheduled for next Friday, as a significant event happening. The report is expected to shed light on the company’s retail performance, strategic direction, and how much exposure it has to digital assets.

Technical indicators continue to show mixed trends. Some signals point to a potential trend reversal, while others suggest ongoing uncertainty driven by sentiment and market news.

As GameStop balances its identity between meme stock and digital asset holder, investor attention remains high. The upcoming earnings release will likely provide guidance on the company's evolving business model.