CryptoCurrency
GameStop (GME) Stock Pops as Big Short Investor Michael Burry Reveals New Position
TLDR
- Michael Burry announced he’s been purchasing GameStop shares in recent weeks
- The Big Short investor sees value in CEO Ryan Cohen’s $4.7 billion cash deployment strategy
- GME stock jumped 8% Monday after Burry’s Substack disclosure
- Cohen recently bought 1 million shares and awaits shareholder vote on performance pay
- Burry calls this a long-term value investment, not a meme stock speculation play
The Big Short investor Michael Burry has returned to GameStop. He disclosed a new position in the video game retailer nearly five years after the meme stock explosion.
Burry made the announcement Monday in a Substack post. He said he’s been buying GME shares recently at what he expects is 1x tangible book value.
The stock surged as much as 8% following Burry’s disclosure. It closed Monday up 4.44%.
Burry first invested in GameStop back in 2019. He sold his position in late 2020, missing the explosive January 2021 rally that captivated retail traders.
This time feels different to Burry. He’s betting on CEO Ryan Cohen’s ability to transform the company using its massive cash reserves.
Why Burry Likes GameStop Now
GameStop sits on $4.7 billion in net cash. The company raised billions by selling stock during periods of elevated meme interest.
“Ryan is making lemonade out of lemons,” Burry wrote. He believes Cohen is maximizing value from a struggling retail business while waiting for the right acquisition opportunity.
Burry made clear this isn’t a meme stock play. “I am not counting on a short squeeze to realize long-term value,” he stated.
Instead, he’s banking on Cohen’s vision. “I believe in Ryan, I like the setup, the governance, the strategy as I see it.”
Cohen has compared his approach to Warren Buffett’s strategy at Berkshire Hathaway. Buffett transformed a failing textile company into a conglomerate by deploying cash into better businesses.
Cohen told Barron’s that taking a business without great prospects and navigating it to other investments is “definitely GameStop.”
Cohen’s Track Record
Cohen became GameStop’s chairman in June 2021 and CEO in 2023. Under his leadership, the company has posted six consecutive quarters of profitability.
Sales dropped 4.6% to $821 million in the latest quarter. But net income soared 343% to $77.1 million.
GameStop has closed stores rapidly. The company operated 3,203 locations as of February 2025, down from 4,816 in January 2021.
Cohen says the company is open to deploying cash outside its core retail business. GameStop expanded into collectibles and began buying bitcoin last year.
What’s Next for Cohen
Shareholders will vote in March or April on Cohen’s compensation package. The performance-based plan could award him options for up to 171.5 million shares at $20.66 each.
Cohen only gets paid if GameStop hits massive targets. These include reaching a $100 billion market value and $10 billion in cumulative performance EBITDA.
The company emphasized Cohen receives no guaranteed salary, cash bonuses, or time-based stock awards. Everything is tied to performance.
Cohen has been buying shares with his own money. Last week he purchased 1 million GME shares for approximately $21.4 million.
He told Barron’s it’s “essential” for a CEO to buy shares with personal funds to align with stockholders.
Burry closed his hedge fund Scion Asset Management recently before making his GameStop purchases. He wrote he’s “willing to hold long-term” and is “excited to see where this goes.”
