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GameStop Stock Soars After Significant Bitcoin Purchase

Stock market trend with upward momentum, Bitcoin symbols, and graphs in a digital art style using cool colour tones.

GameStop’s stock increased over 6% on Wednesday, boosted by its purchase of 4,710 Bitcoin, valued at $513 million. Deutsche Bank has upped its GameStop stake, joining other institutional investors in their support. Crypto blogger Frank Nez expects GME could reach $45 if it maintains momentum following a recent technical breakout.

GameStop (NASDAQ:GME) stock has seen a significant spike of over 6% early on Wednesday, breaking the $35 barrier after a long period of sideways movement. It touched $36.80 at its peak with around 32 million shares exchanged. However, shortly after, the price retracted by 9% to $31.80, signalling a potential short-term pullback ahead of another possible rally.

The surge in GameStop’s stock closely followed the company’s announcement regarding its acquisition of 4,710 Bitcoin, valued at approximately $513 million at current market rates. This move has indicated to investors that GameStop is becoming more committed to the cryptocurrency space. The funds for this purchase were raised via a $1.5 billion bond offering completed last month, potentially strengthening the company’s balance sheet.

Bitcoin’s price has also been experiencing upward movement, adding to the overall momentum. Earlier today, it peaked at $110,410 but has since dipped by 1.5% to $107,289 according to CoinMarketCap data. This fluctuation plays a crucial role in the cryptocurrency market, which often reflects directly on stocks tied to digital currencies.

Additionally, Deutsche Bank reported an increase in its stake in GameStop, purchasing nearly 195,000 shares in the last quarter of 2024. This brings their total holding to around 214,000 shares, estimated at about $6.7 million. Other significant financial players, including Vanguard, BlackRock, Morgan Stanley, and Jane Street, have also increased their interest in GameStop recently.

The return of Keith Gill, known as “Roaring Kitty,” who was instrumental in the initial GameStop frenzy, may also be fueling interest among retail investors. Following his sudden return to social media last September, GameStop’s memecoin shot up over 65%.

Looking ahead, crypto blogger Frank Nez has speculated that GME could reach as high as $45 due to the recent upward trend. He observed a bounce off from a support level at $11 that created significant upward momentum but acknowledged a rejection partway through. The daily technical analysis indicates a recent breakout from a symmetric triangle pattern, which could lead to another retest of the breakout zone.

If this breakout zone holds, there is potential for a 111% rise towards a target of $47, identified as its next high. Moreover, social media users appear to be aligning with these optimistic projections, suggesting bullish targets of $45, $68, or even up to $100.

Elena Garcia, a San Francisco native, has made a mark as a cultural correspondent with a focus on social dynamics and community issues. With a degree in Communications from Stanford University, she has spent over 12 years in journalism, contributing to several reputable media outlets. Her immersive reporting style and ability to connect with diverse communities have garnered her numerous awards, making her a respected voice in the field.

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