GameStop, the video game retailer-turned-meme stock, is reportedly exploring investments in Bitcoin and other cryptocurrencies, according to sources familiar with the matter. The company is assessing alternative asset classes with a keen focus on crypto, however, no final decision has been made yet.
The news triggered a surge in GameStop’s shares with a 20% hike in after-hours trading. While the company is still evaluating the strategic fit of such an investment, CEO Ryan Cohen’s recent social media activity has sparked speculation.
Last weekend, Cohen posted a photo on X, which shows him standing beside Michael Saylor, co-founder and chairman of MicroStrategy, which is the largest corporate holder of Bitcoin. However, sources say that Saylor is not involved in the gaming merchandise’s crypto discussions.
This would not be the company’s first foray into the digital asset space. In 2022, It launched a crypto wallet supporting cryptocurrencies and NFTs, but the regulatory’s delusional stance over crypto forced its shutdown in 2023. Cohen, who gained prominence as the co-founder of Chewy, has been directing GameStop toward cost-cutting and streamlining operations.
As of November 2023, GameStop held $4.6 billion in cash reserves, which it has been deploying into various investments. The company’s December board decision extended Cohen’s authority over investment strategies, which allows selected board members to oversee the firm’s securities portfolio.
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