Could GameStop Go Crypto? Retailer Reportedly Considering Bitcoin Investments

GameStop, a video game retailer, and popular meme stock, is reportedly considering investing in Bitcoin and other cryptocurrencies. Three insiders revealed that the company is assessing alternative asset classes, particularly in crypto as the US political landscape shifts in favor of the industry after years of hostility.

After the news broke, GameStop’s shares saw a double-digit surge in after-hours trading. However, the company has yet to finalize its decision, and it may ultimately choose not to proceed with the investments.

According to CNBC, one source indicated that GameStop is still evaluating whether this move fits within its broader business strategy.

The company debuted its self-custodial wallet in May 2022, allowing customers to manage crypto assets and NFTs through their web browsers. Later that year, it expanded its crypto efforts by unveiling an NFT marketplace built on the Ethereum-based Loopring L2 network. However, in August 2023, the company shut down the service, citing concerns over “regulatory uncertainty.”

The latest development comes just days after GameStop CEO Ryan Cohen sparked speculation by posting a photo with MicroStrategy chairman and co-founder Michael Saylor on X. MicroStrategy is the biggest corporate holder of Bitcoin. Despite this, two sources confirm that Saylor is not currently part of GameStop’s crypto investment talks.

The firm’s board established a new “investment policy” in December 2023 which allowed Cohen, two independent board members, and important personnel to manage the its securities investments. However, all of them must adhere to the policy’s rules or gain approval either by a unanimous committee decision or a majority vote from the full board.

The firm has not yet addressed the speculation.