Is Gamestop about to DROP $4.6B on Bitcoin?! CEO fuels HUGE speculation | Bitcoin News by CoinCorner

Transcript

It's non-stop bullish news this week as the video game retailer GameStop, who is sitting on $4.6 billion in cash reserves, considers investing in Bitcoin. The US Bitcoin ETFs continue to grow at a rapid pace as it's revealed more mainstream institutions, and now the first major sovereign wealth fund, have purchased shares in huge quantities. Jerome Powell, chair of the Federal Reserve, has clarified that they will not be developing a central bank digital currency.

Welcome back to Bitcoin News, brought to you by CoinCorner. I'm your host, Alex Glass. Now, let's get straight into this week's top stories.

Looking first at Bitcoin's price-despite having an abundance of bullish news, the price has remained fairly stagnant. Bitcoin appears to be range-bound, trading between $92,000 and $107,000 per coin, consistently chopping sideways. Although this is not the violent volatility that some look for from the asset, this movement is not too dissimilar from what we experienced for most of last year, where the price consistently moved sideways for around seven months before eventually taking off.

Now, moving on to our first story. Chair of the Federal Reserve, Jerome Powell, squashed the possibility that the Fed will develop its own central bank digital currency. During a Senate Banking Committee meeting last week, Powell was directly asked by Senator Bernie Marino: "Can I have your commitment that as long as you're chairman of the Federal Reserve System, we will never have a central bank digital currency?" To which Powell responded, "Yes."

The reason this is so important to hear-getting such a definitive answer-is that over the last several years, there's been a lot of speculation that the Fed could follow in the footsteps of China and some countries in Europe who are developing their own CBDCs. The cause for concern is that the implementation of such money could lead to increased government surveillance, further controls, and restrictions on citizens. Many believe that something like this takes power and freedom away from individuals, putting it in the hands of the state. This may be why Senator Marino said, "It makes me very happy to hear you say that," in response to Powell's clarification.

Great as this is, it's important to note that Powell's term as Fed chair ends in May 2026, so looking beyond then, who knows what could happen?

Now, staying in the US-this week, the Wyoming Highway Patrol Association has revealed that they are considering buying Bitcoin. The US law enforcement agency's vice president said, "We are excited to explore Bitcoin as a network and asset to evaluate the ways it can further support our organization and its members."

The Highway Association has also joined the organization Proof of Workforce, which is a nonprofit aiming to increase Bitcoin adoption across workers' unions and pension funds, as their research suggests that 60% of workers live paycheck to paycheck. The founder of Proof of Workforce, Don Bay, truly sees Bitcoin as the answer, as he said:

"Similar to the chaotic and unpredictable emergency situation, Bitcoin remains reliable and a stable long-term tool for workers and wage earners amidst an ever-changing and expanding fiat-based monetary system."

Wyoming's association has said that if they do go ahead with the Bitcoin purchase, they would seek to self-custody a portion of the holdings as a way to mitigate counterparty risk.

Now, moving on to corporate adoption-this week, it's been revealed that GameStop, the struggling video game retailer turned meme stock, is exploring the possibility of investing in Bitcoin. Just last week, CEO Ryan Cohen posted a photo on X with Michael Saylor, co-founder of MicroStrategy, formerly known as MicroStrategy-the world's largest corporate holder of Bitcoin. This sent the internet into a bit of a frenzy, questioning whether GameStop could be the next to run the MicroStrategy playbook.

According to three sources, GameStop is exploring investments in alternative assets, including crypto and Bitcoin in particular. This announcement resulted in shares soaring by around 20% in extended hours trading.

Under Cohen's leadership, GameStop has focused on cutting costs and streamlining operations to ensure the business is profitable, even though it's not growing. As of November 2nd, the company has amassed a huge $4.6 billion cash pile and has been using those funds for investments. It all remains to be seen what will happen, but if they do opt to follow in MicroStrategy's footsteps, this could be a monumental turning point for the struggling company, echoing that of MicroStrategy.

More positive news for corporate adoption-Barclays Bank has disclosed owning $131 million of BlackRock's Bitcoin ETF. They have become the latest major financial institution to jump on the Bitcoin ETF bandwagon, revealing the vast holding in a recent 13F filing with the SEC. The purchase took place at some point towards the end of last year, between October and December, so they are possibly sitting on a profit of around 50% already.

These ETFs appear to be the preferred vehicle for institutions to gain exposure to Bitcoin, simplifying any regulatory concerns. Since these ETFs were introduced a year ago, demand has been out of control.

Carrying on with this momentum, analysts are predicting more gains for Bitcoin in the coming years, with projections suggesting it could reach as high as $200,000 by late 2025.

Another fund that has revealed being a large holder of the same ETF is Abu Dhabi's sovereign wealth fund, which has invested $436 million. The Mubadala Investment Company, Abu Dhabi's sovereign wealth fund, purchased $436 million worth of BlackRock's Bitcoin ETF in the first quarter of 2024, according to a recent 13F regulatory filing.

Despite being such a huge investment, this represents just 0.56% of the fund's wider portfolio of over $280 billion in assets. That said, this is one of the first known allocations into Bitcoin by such a major sovereign wealth fund.

This move also follows a broader trend across the Middle East, with openness to digital assets from retail, institutions, and governments.

Now, for our final story-more positive news on the topic of government adoption. The head of the Czech Central Bank has said that Bitcoin should be studied, not feared. Governor of the Czech National Bank, Ales Michl, recently revealed that they are considering a 5% allocation of the bank's reserves into Bitcoin, equating to around $7 billion.

This week, in a post on X, Michl emphasized his stance and support for Bitcoin, saying that Bitcoin should not be lumped together with other crypto assets, which he believes should be approached with extreme caution.

He stated:

"Central bankers should study Bitcoin and explore the technology it's built on. Studying Bitcoin won't harm us. On the contrary, it will strengthen us."

It's still unknown what decision they'll make, but these comments are definitely bullish and represent a huge step forward for nation-state adoption.

Unfortunately, that is all we have for you today. As always, make sure to hit that subscribe button down below, and I'll see you next week with more Bitcoin news.