GameStop Stock Draws Strength From Bitcoin, Meme Token Surge: Retail Speculates On ‘Roaring Kitty’ Return

Shares of GameStop (GME) climbed as much as 18% over the last two days of the week to hit nearly their highest point year to date.

The swing is likely based on the surge in the price of the GME token, which gained some 50% over the last week, and gains in the price of Bitcoin.

Following the company's recent pivot into cryptocurrency, GameStop shares are increasingly viewed as linked to Bitcoin's price.

Known for being at the center of the 2021 “meme stock” frenzy, GameStop announced plans to diversify its balance sheet by allocating part of its cash reserves to Bitcoin, citing long-term value preservation.

Last month, the video games retailer raised $1.5 billion in a bond offering to fund this purchase, which also signals investors' confidence in the company's plan.

Bitcoin (BTC.X) has gained 4% over the last week, briefly crossing the $110,000 mark, and over 16% in the last 30 days.

Meanwhile, GameStop confirmed last week that it will receive additional shipments of Nintendo's upcoming Switch 2, set to launch on June 5. The company said its initial pre-order window in April sold out within a few hours.

According to GameStop, in-store launch events will begin at 3 p.m. local time on June 4, and pickups will start the next day at 12 a.m. ET or on June 4 at 9 p.m. PT.

On Stocktwits, the retail sentiment of the company was ‘extremely bullish,’ unchanged from a week ago.

A user noted that "Bitcoin-related buzz" was driving the stock and that the GME meme token had surged 50% last week.

Several users also mentioned Keith Gill a.k.a “Roaring Kitty,” expecting the YouTuber and investor to express an opinion on the company soon. His past posts and analyses have driven wide swings in GameStop.

GME shares are up 5.4% this year.

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