GameStop (GME) shares gained as much as 5% in an otherwise down market on Monday following an SEC filing that confirmed its chief executive has increased his stake in the gaming merchandise retailer. 

Ryan Cohen spent a total of $10.7 million to load up on 500,000 shares of GME last week, as per the regulatory filing on April 3. His stake in the NYSE-listed firm now sits at about 8.4%. 

Despite today’s surge, GameStop stock is down nearly 30% versus its year-to-date high at writing. 

Why Is Cohen’s Purchase a Positive for GME Shares?

Insider buying is often a positive sign as it typically indicates that executives are confident in the company’s growth potential and are, therefore, willing to invest their money in it. 

Cohen’s recent purchase, for example, could serve as his vote of confidence in GME’s recently disclosed Bitcoin (BTCUSDT) strategy.  

Last month, the retailer that’s broadly known as the “original meme stock” announced plans of putting BTC on its balance sheet, hoping the digital asset will drive investors to GME. 

GameStop’s expectations are rooted in the example of MicroStrategy (MSTR) that’s soared nearly 2,200% over the past five years. 

GameStop’s Profit More Than Doubled in Q4

MSTR’s example and the broader expectations of an eventual recovery in Bitcoin makes GME stock an interesting investment proposition for 2025. 

Investors should also note that GameStop’s profitability picture has improved as well. 

In its latest reported quarter, the gaming merchandise retailer logged lower expenses that helped push its net income significantly up to $131 million from about $63 million only a year ago. 

Plus, the NYSE-listed firm remains committed to closing its underperforming stores and exiting some international markets, which may further improve its profitability moving forward. 

Is It Worth Investing in GameStop Stock?

Both the BTC strategy and the improving profitability, however, have failed to make analysts any more bullish on GameStop stock for 2025. 

Wall Street continues to see GME as a high-risk, speculative investment. The consensus rating on the meme stock currently sits at “Strong Sell” with a price target $13.50, based on one analyst, warning of a potential downside of about 45% from here.