GameStop shares jumped 20% in after-hours trading following reports that the video game retailer is considering investments in cryptocurrencies, including Bitcoin.
The speculation has fueled renewed interest in the company, which gained widespread attention as a meme stock during the 2021 retail trading frenzy.
According to sources cited by CNBC, GameStop is evaluating whether adding Bitcoin and other digital assets to its portfolio aligns with its business strategy. However, no final decision has been made, and the company may ultimately opt against the investment.
GameStop has significant financial resources, with $4.6 billion in cash on hand as of the third quarter and total liabilities under $1.5 billion. This financial position could provide the company with flexibility if it decides to enter the crypto market.
CEO Ryan Cohen recently posted a photo on social media platform X featuring himself alongside MicroStrategy co-founder and chairman Michael Saylor.
MicroStrategy is the largest corporate holder of Bitcoin, having made a high-profile pivot to the cryptocurrency. Despite this, sources confirmed that Saylor is not directly involved in GameStop’s discussions regarding potential crypto investments.
Bitcoin remains below the $100,000 mark, with analysts forecasting further price increases by year-end. Some market observers believe GameStop’s potential move mirrors MicroStrategy’s strategy, as the latter transitioned to Bitcoin investment when its traditional business faced challenges.