General view of the GameStop logo in a store in the heart of Cologne, Germany.
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Video game retailers turn to meme stocks GameStop Sources familiar with the matter said they are considering investing in Bitcoin and other cryptocurrencies.
GameStop is exploring investments in alternative asset classes, including cryptocurrencies, and especially Bitcoin, three sources said. After the news, GameStop’s stock surged as much as 20% in expanded trading.
Retailers can decide not to follow the investment. The company is still figuring out whether this makes sense for GameStop’s business, a source said.
Last weekend, CEO Ryan Cohen Posted a photo on X with Michael Saylorco-founder and chairman Micro-studythe largest Bitcoin company holder. However, Saylor is not currently involved in GameStop’s discussion on crypto investment, two sources said.
In 2022, GameStop launched a crypto wallet that allows users to manage their cryptocurrencies and non-drinkable tokens. However, the company closed its services in 2023, citing “regulatory uncertainty.”
Chewy’s co-founder Cohen bought GameStop shares in 2020 and joined GameStop in 2021 to become one of the major meme stocks in trading fanatics. His e-commerce experience has driven him hope he can help modernize brick-and-mortar retailers, but the company is still working to adapt to players changing spending habits.
Under Cohen, GameStop is committed to cutting costs and streamlining operations to ensure business profitability, even if it does not grow. According to a December securities application, the company had accumulated a $4.6 billion cash pile as of November 2 and had been using the funds to invest.
Companies considering adding bitcoin to their balance sheet will follow Micro-study. The company recently renamed Strategy, which has purchased billions of dollars worth of Bitcoin in recent years, effectively transforming from software inventory to holding vehicles that hold Bitcoin.
The decision helps promote rapid growth in strategic stocks, even in turbulent terms.
In December 2023, GameStop’s board of directors approved a new “investment policy.” It allows Cohen, plus two independent board members and other essential employees to manage GameStop’s securities portfolio. These investments must comply with the guidelines of the policy, or be approved by the committee by a unanimous vote or by a majority vote.
