TL;DR
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GameStop is looking to follow the Strategy way by investing in Bitcoin and other cryptocurrencies.
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The report comes a few days after GameStop CEO posted a picture of himself with Michael Saylor.
GameStop Mulls Bitcoin/Crypto Investment
Video game retailer turned meme stock GameStop is mulling investing in Bitcoin and other major cryptocurrencies. CNBC revealed this in a report, citing sources close to the matter.
Citing three sources, CNBC said the company is exploring investments in alternative asset classes, including crypto and bitcoin. The news caused GameStop's shares to soar as much as 20%.
One of the sources added that GameStop might decide not to follow through with the investment as they are still figuring out if this makes sense for GameStop’s business.
This latest development comes a few days after GameStop CEO Ryan Cohen posted a photo on social media site X with Michael Saylor, co-founder and chairman of MicroStrategy.
However, two sources confirm that Saylor is not involved in GameStop’s discussion about crypto investments at this time.
This will not be GameStop’s first foray into the crypto space. In 2022, the company launched crypto wallets that let users manage their crypto and nonfungible tokens. However, GameStop halted the service, citing regulatory uncertainties.
If GameStop decides to add Bitcoin to its balance sheet, it would have the needed ammunition to do so. The company reported $4.6 billion of cash on its balance sheet as of the end of the third quarter and total liabilities of less than $1.5 billion.
