What's Going On With GameStop Stock?

GameStop Corp. (NYSE:GME) shares are trading higher Thursday. The stock is up approximately 14% over the past month. Here’s a look at what’s going on.

What To Know: GameStop CEO Ryan Cohen, who made headlines for purchases during the height of the meme stock phenomenon, has added 500,000 more shares to his GameStop position, bringing his total holdings up to 37.3 million shares, representing an 8.4% stake in the video game retailer, per Bloomberg.

According to a recent SEC filing dated April 3, Cohen has now pledged nearly 60% of his holdings — worth around $1 billion — as collateral for a margin loan through Charles Schwab Corp.

GameStop reportedly updated a policy in March allowing executives to use securities as collateral. The loans are permitted as long as they do not exceed 50% of the total share value. While the exact loan amount wasn't disclosed, it would be capped at roughly $236 million based on the terms.

The recent buying activity suggests a strong vote of confidence from Cohen, who purchased the shares just after the company completed a $1.5 billion convertible debt offering, to add Bitcoin as a treasury reserve asset. The company recently updated its investment policy to allow treasury reserves to be held in Bitcoin, signaling a continued shift in the company’s financial strategy.

Cohen has now spent $107 million in total acquiring his GameStop stake, and even with recent volatility, he’s up more than 800% on the investment, Bloomberg reported.

Separately, GameStop director Alain Attal also increased his position in the company. A new Form 4 filed with the SEC showed he purchased 10,000 shares on April 10 at $25.75, bringing his total direct ownership up to 572,464 shares.

Last month, GameStop reported mixed quarterly results as fourth-quarter revenue fell about 28% year-over-year. GameStop reported fourth-quarter net income of $131.3 million, up from $63.1 million in the prior year's quarter. The company ended the period with approximately $4.78 billion in cash, cash equivalents and marketable securities.

GME Price Action: GameStop shares were up 1.83% at $26.72 at the time of writing Thursday, according to Benzinga Pro.

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