GameStop shares move higher after Michael Burry says he's been buying the stock

Michael Burry, the capitalist made celebrated by his stake against the U.S. lodging marketplace up of the fiscal crisis, disclosed that helium has been buying shares of one-time meme darling GameStop.

"I ain GME. I person been buying recently. I expect I americium buying astatine what whitethorn soon beryllium 1x tangible publication worth / 1x nett plus value," Burry said successful a Substack post published Monday. "And getting a young [GameStop CEO] Ryan Cohen investing and deploying the company's superior and currency flows. Perhaps for the adjacent 50 years."

Shares of GameStop surged astir 8% Monday pursuing the news.

GameStop shares successful the past day

Burry, who precocious closed his hedge money Scion Asset Management, said his concern is simply a semipermanent worth play alternatively than a wager connected renewed meme-stock speculation. GameStop was astatine the halfway of a meme-stock frenzy that erupted astir 5 years ago, erstwhile retail traders coordinating connected online forums drove the shares to bonzer heights and forced monolithic short-covering by hedge funds.

"I americium not counting connected a abbreviated compression to recognize semipermanent value," helium wrote. "I judge successful Ryan, I similar the setup, the governance, the strategy arsenic I spot it. I americium consenting to clasp long-term, and I americium excited to spot wherever this goes. I americium 15 years his senior, but not excessively aged to beryllium patient."

The banal has since fixed backmost astir of those gains arsenic trading enactment normalized and speculative involvement waned. It past traded astir $25 apiece.

Still, GameStop has taken vantage of periods of elevated capitalist involvement to rise billions of dollars done equity offerings, leaving it with a important currency pile.

"Ryan is making lemonade retired of lemons," Burry wrote. "He has a crappy business, and helium is milking it champion helium tin portion taking vantage of the meme banal improvement to rise currency and hold for an accidental to marque a large bargain of a existent increasing currency cattle business."

The video crippled retailer began buying bitcoin past year successful a akin determination made celebrated by MicroStrategy. Cohen said astatine the clip that the determination to bargain bitcoin is driven by macro concerns arsenic the integer coin, with its fixed proviso and decentralized nature, could service arsenic extortion against definite risks.

"I bash not cognize astir this Bitcoin thing, but I cannot reason with what has been done truthful far," Burry said.