Gamestop is considering investing in bitcoin, other crypto, sources say

Video game dealer turned Meme -Stores Gamestop Considering investing in Bitcoin and other cryptocurrencies, according to sources familiar with the case.

Gamestop is investigating investments in alternative asset classes, including Crypto and Bitcoin in particular, said three sources. Gamestop shares rose as much as 20% in expanded trade after the news.

The dealer could decide not to keep up with the investment. The company is still in the process of finding out if this makes sense for Gamestop’s business, according to a source.

Last weekend, CEO Ryan Cohen published a photo on social media page X with Michael Saylor, co -founder and chairman of MicrostrateyThe largest business owner of Bitcoin. However, Saylor is not involved in GameStop’s discussion about cryptoin investments at this time, two of the sources said.

In 2022, GameStop Launched Crypto -Books that let users control their crypto and non -swingable symbols. However, the company closed the service in 2023 with reference to “Legislative uncertainty.”

Cohen, co-founder of Chewy, bought shares in Gamestop in 2020 and took up the board in 2021, when GameStop became one of the most important meme shares in trading mania. His e-commerce experience provoked hope that he could help modernize bricks and the mortar dealer, but the company is still struggling to adapt to changing consumption habits from players.

Under Cohen’s management, Gamestop has focused on cutting down on costs and streamlining operations to ensure the company is profitable even if it is not growing. From November 2, the company had collected a cash pile of $ 4.6 billion and has used these funds for investment, according to a filing of securities in December.

Businesses considering adding Bitcoin to their balance would follow in the footsteps of Microstratey. This company, recently redirected to strategy, has purchased billions of dollars worth of Bitcoin in recent years and effectively transformed from a software stock to a Bitcoin vehicle.

The decision has helped fuel to a quick, if fleeting, increase for the strategy’s warehouse.

In December 2023, GameStop’s Board of Directors approved a new “Investment Policy.” It gives Cohen plus two independent board members and other necessary staff to manage Gamestop’s portfolio of securities investments. These investments need to comply with the guidelines of Politics or be approved by the committee with a unanimous vote or the full board by majority.