GameStop Stock Soars 12% after BTC Investment Speculation
GameStop stock has popped higher after markets closed, on rumours that the company will invest on Bitcoin, showing more excitement than BTC.
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GameStop (GME) is reportedly considering investing in Bitcoin, though it remains unclear how much, if any, the company will allocate to the cryptocurrency. This speculation sent GameStop’s shares soaring over 15% in after-hours trading, jumping from $26 to $30 before stabilizing around $27.
The company is said to be exploring investments in alternative asset classes, with a particular focus on crypto and Bitcoin, according to sources familiar with the matter. However, no final decision has been made, and GameStop could ultimately choose not to proceed.
Financial Position and Speculation
- GameStop has $4.6 billion in cash reserves and total liabilities below $1.5 billion, giving it the financial flexibility to make such an investment.
- CNBC reported that the company is evaluating whether Bitcoin or other digital assets could be beneficial for its operations.
- A request for comment from GameStop has not been answered yet.
Context and Market Reactions
- GME’s stock doubled in 2024, with major spikes in May and June, briefly pushing the price near $40.
- This pales in comparison to early 2021, when GME skyrocketed to $80, forcing a major hedge fund shorting the stock into bankruptcy.
- Speculation intensified after GameStop CEO Ryan Cohen posted a picture with Michael Saylor, co-founder of MicroStrategy (MSTR), the largest corporate Bitcoin holder.
After all, GameStop’s potential crypto investment remains uncertain, but market excitement and speculation are already driving volatility in its stock. If the company follows through, it could mark a significant shift in its financial strategy, adding a new layer to its transformation from a traditional video game retailer into a tech-focused business with digital asset exposure.
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