GameStop Explores Cryptocurrency Investments
GameStop (GME) surged after hours on Thursday following reports that the video game retailer is considering investing in cryptocurrencies, including bitcoin (BTC-USD).
CNBC Report
According to CNBC, GameStop is exploring the possibility of investing in cryptocurrencies but has not yet made any firm decisions. The news sparked a rally in GameStop's stock, which jumped over 20% after the bell before paring some gains.
Ryan Cohen's Tweet
Speculation about GameStop's interest in cryptocurrency was fueled by a social media post from CEO Ryan Cohen over the weekend. Cohen shared a photo with Michael Saylor, CEO of MicroStrategy (STRK), who has invested heavily in bitcoin.
MicroStrategy's Success
MicroStrategy has seen its stock price surge over 370% in the past year due to its aggressive bitcoin investment strategy. The company now holds over 447,000 bitcoins, making it the world's largest bitcoin treasury company.
GameStop's Potential
Analysts suggest that GameStop could consider following MicroStrategy's model and use its $4.6 billion in cash and cash-like securities to invest in bitcoin. This could be a significant catalyst for GameStop's stock price.
Recent Stock Performance
GameStop has declined about 15% in the past month. However, the company has not yet reported its fourth-quarter earnings, which could potentially provide further guidance on its financial health and investment plans.