GameStop Explores Cryptocurrency Investment, Stock Soars
CNBC reports that GameStop (GME) is considering investing in cryptocurrencies, including Bitcoin (BTC-USD). The stock surged in pre-market trading on Friday, buoyed by the news.
GameStop CEO Ryan Cohen's recent social media post fueled speculation about the company's interest in crypto. Cohen's meeting with MicroStrategy (MSTR) CEO Michael Saylor, a prominent Bitcoin advocate, further fueled rumors.
Strategy, formerly known as MicroStrategy, has invested heavily in Bitcoin, holding over 447,000 tokens. Its shares have surged over 370% in the past year, mirroring Bitcoin's rally.
Analysts suggest that investors may be betting on GameStop following Strategy's Bitcoin investment strategy. GameStop's strong cash position of $4.6 billion could provide the necessary resources for such an investment.
In December 2023, GameStop's board authorized Cohen to use the company's capital for investments. This move signaled a shift towards a holding company model like Berkshire Hathaway.
GameStop's stock has fallen since hitting a high of $64 per share in May 2024. It has lost about 15% in the past month. The company's fourth-quarter earnings have yet to be reported.