GameStop Plans to Invest in Bitcoin, Shares Surge 20% in Extended Trading
Video game retailer GameStop (GME) experienced a 20% spike in share prices during after-hour trading, following a report about its plans to invest in Bitcoin. The Texas-headquartered firm is mulling adding Bitcoin and other cryptocurrencies to its balance sheet, CNBC reported.
GameStop finished the trading day at around $26.30, surging to a peak of $31.30 in extended trading. The shares settled at around $28.36, according to Google Finance data, which still marks a 7% gain. The sources added that GameStop is still in the process of considering whether the investments would align with its business.
Meanwhile, a Solana-based memecoin associated with the GameStop name, which is unaffiliated with the company, saw a sudden spike of 45%, rising to $0.0027. According to CoinGecko data, the memecoin later fell back to $0.0025.
GameStop CEO Meets Strategy’s Michael Saylor
The retailer’s plans to venture into Bitcoin investments come days after GameStop CEO Ryan Cohen met with Strategy (MSTR) founder and Executive Chairman Michael Saylor. Cohen posted a picture of his meeting with Saylor on February 8. Strategy (formerly MicroStrategy) is the largest corporate holder of Bitcoin, with more than 400,000 tokens.
Some speculated that GameStop has drawn inspiration from Strategy’s massive Bitcoin venture. However, two sources clarified to CNBC that Saylor is not involved in GameStop’s discussion about Bitcoin investments at this time. Considering GameStop’s $4.616 billion in cash on its balance sheet as of the end of the third quarter, along with total liabilities of less than $1.5 billion, the firm appears to have a decent amount of Bitcoin buying power.
GME’s Crypto Wallets and NFT Venture
The gaming retailer previously ventured into the crypto space with the launch of a crypto wallet in 2022. However, the company cited “regulatory uncertainty” before shutting down the initiative in 2023. GameStop also launched its official NFT marketplace on Halloween in 2022, focusing on gaming assets and partnering with ImmutableX, an Ethereum layer 2 blockchain solution. As a gradual exit from the industry, the firm closed its NFT marketplace in January 2024, given its relatively low impact on the overall NFT trading landscape.