A general view of the GameStop logo in one of the shops in the city centre of Cologne, Germany.
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Video Game Retailer Turned Meme Stocks GameStop Sources familiar with the issue say they are considering investing in Bitcoin and other cryptocurrencies.
GameStop is specifically investing in alternative asset classes, including Crypto and Bitcoin, three sources say. GameStop stocks have surged 20% in expanded trading following the news.
Retailers can decide not to follow the investment. According to one source, the company is still aware if it makes sense for Gamestop’s business.
Last weekend, CEO Ryan Cohen posted a photo on social media site X. MicroStrategythe largest corporate holder of Bitcoin. However, Saylor is not involved in GameStop’s discussion of crypto investment at this time, two sources said.
In 2022, GameStop launched a crypto wallet, allowing users to manage encryption and creepy tokens. However, the company stopped services in 2023, citing “regulatory uncertainty.”
Cohen, the co-founder of Chewy, bought shares at GameStop in 2020 and joined the board of directors in 2021 as Gamestop became one of the key meme stocks for trading enthusiasts. His e-commerce experience has encouraged hope that he could help modernize brick and mortar retailers, but the company still struggles to adapt to changes in spending habits by gamers. Masu.
Under Cohen’s leadership, GameStop focuses on cutting costs and streamlining sales, ensuring that the business will still make money even if it is not growing. As of November 2, the company has accumulated a $4.6 billion cash pile, and it uses these funds to invest, according to its December securities application.
Companies considering adding Bitcoin to their balance sheets: MicroStrategy. The company has recently changed its strategy, buying billions of dollars worth of Bitcoin in recent years, effectively transforming from software inventory into a Bitcoin-holding vehicle.
This decision encouraged a rapid rise if volatile due to the stock of the strategy.
In December 2023, Gamestop’s board approved a new “Investment Policy.” This allows Cohen, two independent board members and other necessary staff to manage GameStop’s securities investment portfolio. These investments must be in compliance with policy guidelines or approved by the committee by a unanimous vote or full board of directors.
