GameStop Corp (NYSE:GME) is considering investments in Bitcoin and other cryptocurrencies, according to sources familiar with the matter. The move comes as the company seeks to diversify its assets.
The stock surged 7.7% after hours on Thursday, reflecting investors’ confidence in the potential investment. This marks a significant increase from its peak of 20%.
GameStop’s CEO Ryan Cohen played a key role in this decision. Cohen was brought on board to modernize the company and reduce costs. Since his appointment, GameStop has accumulated funds for reinvestment.
Although GameStop briefly ventured into the crypto market last year with cryptocurrency wallets, concerns about regulation led to their shutdown. The recent photo of Cohen with Michael Saylor, chairman of Strategy (formerly MicroStrategy), has fueled speculation about GameStop’s Bitcoin investment plans.
In a surprise move, Strategy has transitioned from being a software company to investing heavily in cryptocurrencies, including Bitcoin.
Source: https://www.investing.com/news/stock-market-news/gamestop-shares-skyrocket-as-company-considers-crypto-investments–cnbc-3869272