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Gaming retailer turned memestock GameStop is reportedly considering adding the world’s first cryptocurrency Bitcoin (BTC) to its balance sheet.
A recent CNBC report, three sources familiar with the matter said that GameStop is considering alternative asset investments including crypto and Bitcoin. The company’s shares jumped up by 20% following the news.
Still, the report notes that the sources admit that GameStop may still decide to not go forward with the plan. The firm is still evaluating whether such an investment would be a good fit for its business, explained one of the sources.
The details
The report is not completely out of the blue. GameStop CEO Ryan Cohen recently posted a photo with Strategy co-founder and chairman Michael Saylor.
Saylor is a world-renowned Bitcoin evangelist who previously attempted to sell the idea of holding BTC on corporate balance sheets to the Microsoft Board. The initiative later failed, with similar proposals for investing 5% of company capital being floated at Amazon.
One major tech company that invested in Bitcoin is electric manufacturer Tesla. The firm reported $600 million worth of earnings on its Bitcoin holdings in the last quarter of 2024.
Strategy — previously known as MicroStrategy — is a publicly-traded business intelligence company founded in 1989 that pivoted to acquiring as much Bitcoin as possible in 2020.
The company now holds over 1% of all Bitcoin that will ever exist and is well on its way to reach 2%. MicroStrategy used to serve as a a regulatory-friendly Bitcoin investment but its stock prices suffered greatly after Bitcoin spot exchange-traded funds (ETFs) took over that role instead.
Cohen led GameStop in its crusade on costs and operation streamlinig to ensure profit amid absent growth. The firm was able to accumulate $4.6 billion worth of capital as of Nov. 2, 2024 and is now using this capital for investments.
