GameStop has once again found itself at the center of financial speculation, as reports suggest the company may be exploring investments in cryptocurrencies. This possibility ignited excitement among investors, sending GameStop’s stock price soaring by 18% in after-hours trading.
Rising Speculation and Market Impact
On February 13, CNBC reported – citing three sources familiar with the matter – that GameStop was contemplating adding Bitcoin to its balance sheet. While discussions are apparently ongoing, one insider cautioned that the company had yet to determine whether such a move aligns with its long-term strategy.
The mere suggestion of a potential pivot toward digital assets sent GameStop’s stock price climbing in extended trading, briefly surging past $31.30 before settling at $28.36, which still reflected a 7% gain at the time of writing. The enthusiasm was not limited to GameStop’s official stock alone, an unaffiliated, Solana-based memecoin called GameStop (GME) also experienced a dramatic 45% spike, reaching $0.0027 before cooling to $0.0025, according to CoinGecko.
Connections to Bitcoin and Broader Implications
Speculation was fueled further by GameStop Chairman Ryan Cohen’s social media activity. On February 7, Cohen posted a picture of himself alongside MicroStrategy’s executive chairman and co-founder, Michael Saylor, a well-known Bitcoin advocate. This led some to believe GameStop might be considering a Bitcoin acquisition strategy mirroring MicroStrategy’s approach. However, two sources told CNBC that Saylor himself is not directly involved in any GameStop crypto-related decision-making.
This interest in cryptocurrency holdings follows a growing trend among corporations seeking to integrate Bitcoin into their asset portfolios. Notably, Japanese mobile gaming company Gumi recently announced its purchase of $6.6 million (1 billion Japanese yen) worth of Bitcoin on February 10. Likewise, Metaplanet disclosed on February 12 that it had raised $26.1 million (4 billion Japanese yen) to purchase additional Bitcoin, bringing its total holdings to 1,762 BTC, worth around $170 million at prevailing market prices.
A History of GameStop’s Crypto Involvement
Interestingly, this would not be GameStop’s first foray into the digital asset space. The company previously launched its own cryptocurrency wallet, allowing users to securely store digital assets. However, regulatory uncertainties led to its closure in November 2023. Alongside this, GameStop had ventured into the booming NFT market, unveiling an NFT marketplace that aimed to capitalize on blockchain-based collectibles. This platform, too, was ultimately shut down in January 2024 due to ongoing regulatory concerns.
GameStop’s willingness to explore unconventional strategies is not surprising given its history of disruptive stock market movements. The company became the poster child of the “meme stock” phenomenon in 2021, when a coordinated effort by retail traders triggered a short squeeze that saw its stock skyrocket more than 1,000% in a single month, dealing a blow to hedge funds betting against the company.
Looking Ahead
Despite GameStop’s previous crypto-related initiatives ending in regulatory hurdles, the latest rumors highlight that the company remains open to exploring alternative asset classes. Whether GameStop will ultimately invest in Bitcoin remains uncertain, but the market’s enthusiastic response underscores the impact such a move could have. As more corporations venture into digital assets, GameStop might find itself at the forefront of yet another financial revolution.
