GameStop, the famous meme stock, made news again when its shares went up 18% in after-hours trade amid rumours that the company might invest in alternative assets like Bitcoin (BTC). The quick rise in share price, which reached $31.30 for a short time, excited investors. The price then dropped to $28.36, still a 7% gain after hours.
Is GameStop looking to invest in Bitcoin?
According to a report on CNBC on February 13, insiders say that GameStop is considering adding Bitcoin to its balance sheet. The company hasn’t made a final choice yet, though. According to one source, executives are still deciding if this spending fits the company’s long-term business plan.
To add to the rumours, GameStop CEO Ryan Cohen recently shared a picture on X of himself with Michael Saylor, the executive chairman of MicroStrategy and famous for having huge Bitcoin holdings. Sources told CNBC, though, that Saylor has nothing to do with GameStop’s possible Bitcoin purchase.
Blockchain and GameStop:
This isn’t the first time GameStop has tried its hand at crypto. The business used to have a cryptocurrency wallet but shut down in November 2023 because of confusion about the rules. In the same way, its NFT platform, which opened in 2022, shut down in January 2024 for the same reasons. GameStop has tried to use blockchain technology, but its past problems show the risks of adopting cryptocurrencies.
Meme coins and businesses using Bitcoin are on the rise
A Solana-based memecoin called GameStop (GME), which has nothing to do with the company, also rose 45% to $0.0027 before decreasing slightly. At the same time, big businesses are increasingly using Bitcoin as a reserve asset. Japanese company Gumi bought Bitcoin worth $6.6 million, and Metaplanet raised $26.1 million to increase the amount of Bitcoin it owns to 1,762 BTC, worth $170 million.
Conclusion
GameStop’s possible move into Bitcoin investing has sparked new interest in the stock, like what happened with its 2021 joke stock. The current price rise is due to speculation, but the real decision will depend on whether GameStop thinks crypto holdings will be valuable in the long run. If the business commits to Bitcoin, it could change how it handles its money. If not, this could be another short-lived market trend.
