Video game retailer and meme stock GameStop is considering investments in Bitcoin and other cryptocurrencies, according to a CNBC report.
Following the news, GameStop shares surged as much as 20% in after-hours trading. Since then, the stock has cooled off and trades are around 7% higher.
The meme stock has had a rough start to the year. GameStop stock has slumped around 15% since the start of 2025.
GameStop’s crypto ambitions
GameStop is evaluating potential investments in alternative asset classes, particularly crypto and bitcoin.
However, the company has yet to make a final decision, with discussions still underway on whether such investments align with its business strategy, the report said citing sources.
This news follows a social media post last weekend by CEO Ryan Cohen, who shared a photo with Michael Saylor, chairman of Strategy (formerly MicroStrategy)—the largest corporate holder of Bitcoin.
Despite the speculation, sources clarified that Saylor is not involved in GameStop’s cryptocurrency discussions.
GameStop has dabbled in the crypto space before. In 2022, it launched crypto wallets for managing cryptocurrencies and NFTs, only to shut the service down in 2023, citing “regulatory uncertainty.”
The company had also launched an NFT marketplace, which was eventually shuttered in January 2024, due to similar regulatory concerns.
If GameStop decides to invest in Bitcoin, it would follow a path similar to MicroStrategy, which transformed from a software company into a major Bitcoin holding vehicle.
While the move fueled volatility, it also contributed to significant growth in MicroStrategy’s stock value.
GameStop under Cohen
In 2021, GameStop became the poster child for the meme stock phenomenon, as retail investors on Reddit’s WallStreetBets forum rallied to inflate its stock price and execute a short squeeze that led to the collapse of Melvin Capital Hedge Fund.
Ryan Cohen, co-founder of Chewy, began investing in GameStop in 2020 and joined its board in 2021 during the height of the meme stock frenzy.
His background in e-commerce fueled optimism that he could transform the brick-and-mortar retailer to compete in the digital era.
However, the company continues to face challenges in adapting to evolving consumer spending habits among gamers.
Despite these struggles, GameStop’s stock remains highly volatile and speculative, with continued support from retail investors, driven in part by the influence of the meme stock figure “Roaring Kitty.”
Under Cohen’s leadership, GameStop has focused on cost-cutting and operational efficiency to ensure profitability amid slow revenue growth.
As of November 2023, the company had a $4.6 billion cash reserve, according to a securities filing.
These funds have been used for various investments, in line with a new investment policy approved by GameStop’s board in December 2023.
The policy allows Cohen, along with two independent board members, to manage the company’s securities portfolio within set guidelines. Any deviation requires either unanimous committee approval or a majority vote from the full board.
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