Michael Burry, best known for predicting the 2008 housing crisis, disclosed in a Substack post that he has been steadily increasing his position in GameStop. He wrote, “I own GME. I have been buying recently. I expect I am buying at what may soon be 1x tangible book value / 1x net asset value.” Burry’s declaration followed reports that he took a sizable stake in the $10 billion video-game and collectibles retailer, and his comments sparked a near 7% uptick in GameStop shares on the day of the announcement. This represents Burry’s first major equity move since winding down Scion Asset Management, and underscores his conviction in GameStop’s assets and governance structure under CEO Ryan Cohen.

Several exchange-traded funds that allocate to GameStop saw increased inflows following Burry’s disclosure. One large thematic ETF reported a 12% rise in net new assets over two trading sessions, as institutional and retail investors re-evaluated the retailer’s risk-return profile. Fundstrat’s flagship ETF, which holds roughly 0.8% of its portfolio in GameStop, reached a three-month high in trading volume. Analysts note that any sustained buying pressure in these ETFs could amplify demand for GameStop equity, potentially narrowing its discount to tangible book value.

Under Chairman Ryan Cohen, GameStop has expanded beyond its traditional retail footprint into collectibles, e-commerce and digital assets. The company has acquired over $300 million of Bitcoin and minted partnerships with over 50 independent collectibles vendors. Cohen’s strategy, described by Burry as “milking the meme phenomenon to raise cash,” aims to redeploy proceeds into scalable online ventures. So far, GameStop has opened five dedicated collectibles hubs and hired more than 200 technology personnel to accelerate its digital transformation.

Burry emphasized that his stake is a value investment rather than a short-squeeze play, noting his willingness to hold for “perhaps the next 50 years.” He highlighted GameStop’s zero-debt balance sheet and estimated tangible book value of roughly $5 per share equivalent. With CEO Cohen targeting annual free-cash-flow generation north of $200 million by 2027, Burry and other long-term investors see a path toward a sustainable margin expansion and potential shareholder returns through dividends or buybacks.