Quick Breakdown
- Famed “Big Short” investor Michael Burry has disclosed a new long position in GameStop ($GME), citing a deep value thesis and faith in CEO Ryan Cohen.
- The disclosure triggered an 8.8% surge in GameStop shares on Monday, January 26, 2026, marking the stock’s highest intraday gain since mid-2025.
- Burry’s return to the “OG meme stock” focuses on the company’s $8 billion cash pile and its recent strategic pivot toward Bitcoin and digital collectibles.
Michael Burry has officially returned to GameStop ($GME), revealing on Monday that he has been purchasing shares of the video game retailer. Burry, whose 2019 investment helped ignite the 2021 meme stock frenzy, stated in a Substack post that he is buying the stock at approximately one times its tangible book value. He highlighted the company’s “pristine” balance sheet and the leadership of CEO Ryan Cohen as primary drivers for his bullish outlook.
BREAKING: GameStop stock, $GME, surges over +5% after Michael Burry announces he has been buying the stock. pic.twitter.com/OtqjBUQMtb
— The Kobeissi Letter (@KobeissiLetter) January 26, 2026
Burry bets on Cohen’s cash-rich strategy
The Scion Asset Management founder, who recently transitioned to managing personal capital, framed the investment as a long-term value play rather than a speculative bet on a short squeeze. Burry noted that under Ryan Cohen’s governance, GameStop has successfully raised billions through equity offerings, fortifying its treasury with roughly $8.8 billion in cash against minimal interest-free debt.
“I believe in Ryan, I like the setup, the governance, the strategy as I see it,”
Burry wrote. He suggested that Cohen is effectively “milking” a declining physical retail business to raise capital for a “big buy of a real growing cash cow business.” This sentiment coincides with recent SEC filings showing that Cohen personally purchased an additional 1 million shares last week, bringing his ownership to roughly 9.3% of the company.
Bitcoin and collectibles offer new optionality
A significant portion of Burry’s thesis rests on GameStop’s recent shift toward unconventional assets. The company has increasingly focused on collectibles and Bitcoin as part of its effort to redefine its brand. With an $8 billion cash position, the market is closely watching Cohen’s Investment Committee for potential large-scale $BTC acquisitions or strategic mergers.
This institutional shift mirrors a broader trend where traditional entities integrate digital assets into their treasury. For instance, Bank of America recently authorized its advisors to recommend spot Bitcoin ETFs to clients, signalling that even the most conservative financial institutions are embracing the asset class as a portfolio diversifier.
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