Michael Burry’s GameStop Bet Sparks Renewed Interest in GME Stock

GameStop shares moved higher on Monday after famed investor Michael Burry disclosed a new position in the company, reigniting market interest in GME stock amid its long-standing reputation for volatility. The disclosure, shared via Burry’s Substack, coincided with increased insider buying activity and rising trading volumes, pushing GameStop stock up as much as 8% intraday to a three-month high near $25 before settling around $24.50.

Michael Burry, best known for predicting the 2008 U.S. housing market crash, described his GameStop investment as a “value long” rather than a speculative bet. He stated that he believes he is buying GME stock close to 1x tangible book value and net asset value, emphasizing fundamentals over meme-driven hype. Burry also made it clear that he does not expect a short squeeze and is comfortable holding the position for several years.

His bullish stance is largely tied to confidence in GameStop CEO Ryan Cohen, whom Burry praised for his management style, capital allocation discipline, and long-term strategic vision. Cohen recently reinforced that confidence by purchasing 1 million GameStop shares, a move widely viewed as aligning management interests with shareholders. This insider buying has helped support GME stock’s roughly 20% year-to-date gains.

Additional insider activity has further strengthened the bullish narrative. GameStop director Lawrence Cheng recently acquired 5,000 shares at an average price of $22.87, increasing his total stake to 88,000 shares through Cheng Capital LLC. Other board members have also added to their positions, while long-time investor DOMO Capital Management remains bullish on GME stock.

Burry also briefly addressed GameStop’s Bitcoin strategy, noting limited familiarity with the details but acknowledging that the move had not hurt the company so far. However, GameStop appears to have exited its Bitcoin holdings less than a year after acquiring them, transferring all BTC to Coinbase in a move widely interpreted as a sell-off. Despite broader weakness in crypto-related stocks and Bitcoin’s recent drop toward $86,000, GameStop shares have continued to climb, supported by insider confidence and renewed investor interest.