TLDR

Michael Burry disclosed he’s been buying GameStop shares, calling it a long-term value play
Burry believes in CEO Ryan Cohen’s ability to deploy the company’s $4.7 billion cash pile
GameStop shares jumped 6-8% on Monday following Burry’s announcement
Cohen recently purchased 1 million shares for $21.4 million and faces shareholder vote on performance-based compensation
Burry compares Cohen’s strategy to Warren Buffett’s approach at Berkshire Hathaway

Michael Burry is back in GameStop. Nearly five years after the meme stock frenzy, the investor famous for betting against the housing market has returned to GME shares.

Burry with a defining $GME quote here: “Being long GameStop is almost as asymmetric as it gets these days in U.S. common stocks.”

Wow. Bullish. pic.twitter.com/PdXZTV5i34

— Reese Politics (@ReesePolitics) January 26, 2026

Burry announced his position in a Substack post published Monday. He said he’s been buying recently and expects to pay around 1x tangible book value.

GameStop Corp., GME

GameStop stock rallied as much as 8% following the news. The shares closed up 4.44% on Monday.

“I own GME. I have been buying recently,” Burry wrote. He added he’s getting a young Ryan Cohen investing the company’s capital, “perhaps for the next 50 years.”

This isn’t Burry’s first GameStop rodeo. He originally purchased shares in 2019 but sold his stake in late 2020. He missed the January 2021 meme stock rally that sent shares soaring.

Burry made clear this is a value play, not a meme stock bet. “I am not counting on a short squeeze to realize long-term value,” he wrote.

The Ryan Cohen Factor

Burry’s thesis centers on CEO Ryan Cohen and what he’ll do with GameStop’s cash hoard. The company sits on $4.7 billion in net cash after raising billions during periods of meme stock mania.

“Ryan is making lemonade out of lemons,” Burry wrote. “He has a crappy business, and he is milking it best he can while taking advantage of the meme stock phenomenon to raise cash.”

Cohen became GameStop’s chairman in June 2021 and CEO in 2023. He’s compared his strategy to Warren Buffett’s approach at Berkshire Hathaway.

Buffett famously transformed Berkshire from a dying textile company into a conglomerate. Cohen told Barron’s in December that taking a business without great growth prospects and navigating it to other investments is “definitely GameStop.”

Cohen says the company is open to deploying cash in ways unrelated to its retail business. GameStop has expanded into collectibles after failed experiments with NFTs.

“In this case, it’s really driven by maximizing return, and frankly, not losing money,” Cohen said. “That’s step number one.”

The company has closed stores aggressively. GameStop operated 3,203 stores as of February 2025, down from 4,816 in January 2021.

Sales fell 4.6% to $821 million in the latest quarter ending November 1. But net income jumped 343% to $77.1 million. GameStop has now posted six consecutive quarters of GAAP profitability.

Cohen’s Compensation Package

Cohen hasn’t taken a salary as CEO until recently. Shareholders will vote in March or April on a performance-based stock option package.

If approved, Cohen would receive options to purchase up to 171.5 million shares at $20.66 each. The awards depend on hitting ambitious targets including a $100 billion market value and $10 billion in cumulative performance EBITDA.

The company emphasized Cohen receives “no guaranteed pay—no salary, no cash bonuses, and no stock that vests simply over time.” His compensation is entirely at-risk and tied to performance.

Cohen has been putting his own money on the line. Last week he purchased 1 million GameStop shares for roughly $21.4 million on the open market.

“I bought ordinary common stock with my own money,” Cohen told Barron’s. “I’m not managing anyone else’s money.”

Cohen said in an SEC filing it’s “essential” for a public company CEO to buy shares with personal funds “to further strengthen alignment with stockholders.”

GameStop began buying bitcoin last year, following MicroStrategy’s playbook. Cohen cited macro concerns and bitcoin’s fixed supply as protection against certain risks.

Burry wrote he doesn’t know about “this Bitcoin thing” but can’t argue with what’s been done so far. He closed his hedge fund Scion Asset Management recently before making his GameStop purchases.

The post GameStop (GME) Stock: Michael Burry Discloses New Position in Video Game Retailer appeared first on CoinCentral.

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Filed under: News - @ January 27, 2026 9:24 am