GameStop Exploring Bitcoin Investment – Will It Follow MicroStrategy?

GameStop is reportedly weighing the possibility of investing in Bitcoin and other cryptocurrencies, sources suggest.

The video game retailer, known for its meme stock status, is said to be exploring alternative assets, with a particular focus on Bitcoin. Following the news, GameStop’s stock surged by as much as 20% in after-hours trading.

While the company has yet to make a final decision, discussions are ongoing about whether such investments align with its business strategy. CEO Ryan Cohen recently fueled speculation by sharing a photo with MicroStrategy co-founder Michael Saylor, though sources indicate Saylor isn’t directly involved in GameStop’s crypto considerations.

GameStop previously ventured into crypto in 2022 by launching a digital wallet for cryptocurrencies and NFTs, but regulatory concerns led to its shutdown in 2023. Since taking control, Cohen has focused on cost-cutting measures and financial stability. The retailer currently holds $4.6 billion in cash and has been exploring investment opportunities.

If GameStop moves forward with Bitcoin investments, it would follow a path similar to MicroStrategy, which pivoted into crypto by accumulating billions in BTC. In late 2023, GameStop’s board approved a new investment policy, granting Cohen and a select committee control over securities investments, as long as they adhere to company guidelines.