GameStop (NASDAQ:GME) stock surged over 6% during Wednesday’s early trading session, breaking above $35 for the first time in a while after consolidating sideways for nearly a year.
The stock even hit $36.80 at one point, with around 32 million shares being traded. However, the token has since dropped by 9% to $31.80 but with signs of a short retracement before another rally.
GME Price dropped shortly after Bitcoin purchase news | Source: Yahoo Finance
The 6% surge came shortly after the retail company announced that it acquired 4,710 Bitcoin, worth roughly $513 million at current market prices. Investors reacted to this based on the fact that the video game store is finally getting serious with cryptocurrency.
The company said it raised the capital through a $1.5 billion bond offering it completed last month. With the purchase, GameStop will be able to strengthen its balance sheet.
Meanwhile, the price of Bitcoin has been going up lately so this added to the the momentum. Earlier today, Bitcoin surged to $110,410 but has since dropped by 1.50% to $107,289, according to CoinMarketCap.
BTCUSD Price Chart | Source: CoinMarketCap
At the same time, Deutsche Bank disclosed in a recent SEC filing that it increased its stake in GameStop by purchasing nearly 195,000 additional shares during the last quarter of 2024. With this, the bank now has a total holding of about 214,000 shares, valued at around $6.7 million.
Other banks like Vanguard, BlackRock, Morgan Stanley, and Jane Street have also reportedly increased their exposure to GameStop. Furthermore, the reappearance of Keith Gill, widely known as “Roaring Kitty,” the investor who helped spark the original GameStop rally, has energized many retail buyers. Last year Sept 6, GME memecoin saw more than 65% after Keith’s sudden return to social media.
GameStop Stock’s Potential Ride to $45
According to Crypto Blogger Frank Nez, GME has the potential to soar to $45 following its recent rally. Looking at the technical analysis, GME tapped from a support zone at $11 which gave it an amazing push to the upside with a strong bullish candle but was later rejected halfway. However, the daily chart shows that the GME broke out of a symmetric triangle and is currently experiencing a short retest probably to the zone that caused the break of structure.
GME Price Chart | Source: TradingView
If this zone is respected, we might see a 111% surge to the upside targeting $47 which is its next swing high. Meanwhile, Frank Nez also confirmed that users on social media have similar targets with some going bullish as $45, $68, or even $100.
