GameStop (NYSE:GME) shares jumped sharply in Monday trading, rising as much as 8.8% before settling to an advance of roughly 5% after investor Michael Burry disclosed that he has been buying the video game retailer’s stock.
Burry, who drew attention for an early 2019 position in GameStop that contributed to the 2021 meme stock episode, made the disclosure in a detailed Substack post. In his own words he said: "I have been buying recently," and added that he expects to be "buying at what may soon be 1x tangible book value / 1x net asset value."
In explaining his rationale, the investor highlighted GameStop’s financial characteristics. He pointed to the company’s "strong cash flow" and noted that roughly $1.2 billion in net operating losses are "sheltering income for the foreseeable future." Burry also observed the company’s low capital spending, calling it "pristine maintenance capex."
Beyond the balance-sheet commentary, Burry expressed explicit confidence in corporate leadership. He said he believes in GameStop Chairman Ryan Cohen, noting Cohen recently increased his stake by purchasing 1 million additional shares. "I believe in Ryan, I like the setup, the governance, the strategy as I see it," Burry wrote, and he indicated a willingness to remain invested for the long term by saying he is "willing to hold long-term."
The post also outlined possible future catalysts that Burry suggested could lift the stock. Among the scenarios he mentioned were prospective Bitcoin purchases or acquisitions, noting that GameStop has an $8 billion cash position overseen by Cohen’s Investment Committee. Those ideas were presented as potential drivers rather than definitive plans.
Market activity in GameStop accelerated on Monday as the shares reached their highest intraday level since October 8 and trading volume rose markedly. The increased turnover accompanied the news of Burry’s renewed buying and the report of Cohen’s additional share purchases.
Summary
Michael Burry disclosed renewed purchases of GameStop shares in a Substack post, citing strong cash flow, substantial net operating loss carryforwards, low capex and confidence in Chairman Ryan Cohen, while noting possible catalysts such as Bitcoin purchases or acquisitions. The stock climbed as trading volume spiked and reached its highest level since October 8.