Crypto Quill

GameStop, the retailer that became a meme stock phenomenon, is reportedly considering investing in Bitcoin and other cryptocurrencies. According to sources familiar with the matter, the company is exploring alternative asset classes but hasn’t made a final decision. The possibility of a crypto move has already sent its stock price surging in after-hours trading.

GameStop Stock Jumps 20% After Report

The news of GameStop’s potential interest in Bitcoin caused its shares to spike 20% in after-hours trading. Investors quickly reacted to the prospect of the retailer expanding into digital assets, a sector that has seen growing institutional adoption.

GameStop’s strategic direction has been a subject of intense speculation since Ryan Cohen, the billionaire co-founder of Chewy, took the reins. His past moves—ranging from cost-cutting to streamlining operations—have reshaped the company’s future. Now, a crypto play could signal yet another pivot.

Cohen’s Cryptic Post Fuels Speculation

Over the weekend, Cohen added fuel to the fire with a cryptic post on X (formerly Twitter). He shared a photo of himself standing next to Michael Saylor, the executive chairman of MicroStrategy and one of Bitcoin’s most vocal corporate advocates.

While Saylor’s MicroStrategy is the largest corporate holder of Bitcoin, sources say he isn’t involved in GameStop’s crypto discussions. That hasn’t stopped traders from speculating that Cohen is drawing inspiration from Saylor’s strategy.

GameStop’s History With Crypto

This wouldn’t be GameStop’s first crypto venture. The company has already experimented with digital assets in the past:

• In 2022, it launched a crypto wallet that supported digital assets and NFTs.
• A year later, the wallet was shut down due to regulatory uncertainty.

Despite setbacks, the company has continued to explore new investment opportunities, and the idea of holding Bitcoin aligns with its broader strategic shift.

GameStop’s Financial Position and Investment Strategy

As of November 2023, GameStop held $4.6 billion in cash reserves. The company has been using these funds to make strategic investments, though it has largely remained tight-lipped about its plans.

A key change occurred in December when the board granted Cohen greater authority over investment strategies. Under the new arrangement:

GameStop’s ability to pivot has kept both investors and analysts guessing. If it does decide to allocate some of its cash reserves to Bitcoin, it would mark a significant shift in corporate treasury strategies—following the footsteps of companies like Tesla and MicroStrategy.

With no official confirmation yet, Wall Street will be watching closely for any announcements. For now, speculation alone has been enough to send GameStop’s stock soaring.