MW Why GameStop might jump on board the bitcoin bandwagon

By James Rogers

Retailer's shares jump in extended trading Thursday after report of possible bitcoin investment

Shares of GameStop Corp. were gaining more than 7% in extended trading Thursday, following a report that the company is weighing a bitcoin investment.

Citing sources familiar with the matter, CNBC reported that the videogame retailer and original meme stock $(GME)$ is considering investing in alternative asset classes including bitcoin (BTCUSD) and other cryptocurrencies.

GameStop shares initially climbed more than 16% after hours, before paring their gains. The company did not immediately respond to a MarketWatch request for comment on the report.

Related: GameStop's stock rises after CEO Ryan Cohen's social-media post sparks bitcoin chatter

The company's stock surged earlier this week after Chief Executive Ryan Cohen posted a picture of himself with Michael Saylor - the executive chair of software company and popular bitcoin play MicroStrategy Inc. $(MSTR.AU)$ - on social media.

The post sparked speculation on social media that GameStop is planning a bitcoin investment.

Crypto-industry companies are seeing a bright future ahead under the more friendly Trump administration. Crypto-trading platform Coinbase Global Inc. $(COIN)$ reported blockbuster earnings Thursday afternoon, saying it's "the dawn of a new era for crypto" and forecasting healthy growth this year. On Wednesday, rival trading platform Robinhood Markets Inc. (HOOD) also reported a huge quarter fueled by crypto trading, and optimism for the coming year.

MicroStrategy, which is now doing business under the name Strategy, recently completed $20 billion of a $42 billion capital plan to buy bitcoin that was announced last year.

Related: MicroStrategy raises another $600 million from preferred stock sales to buy bitcoin

In December 2023, GameStop's board of directors approved a new investment policy that permits the company to invest in equity securities, among other things. The board gave Cohen the authority to manage the investment portfolio.

GameStop shares and those of AMC Entertainment Holdings Inc. $(AMC)$ skyrocketed in 2021 during the meme-stock frenzy fueled by investor Keith Gill, also known as "Roaring Kitty." In Gill's first YouTube livestream in three years in June 2024, the trader described himself as still a "believer" in GameStop and subsequently grew his stake in the company.

Related: Roaring Kitty makes cryptic 'Futurama' post. Everyone is trying to figure it out.

As of Thursday's close GameStop shares were up 81.5% over the last 12 months.

-James Rogers

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February 13, 2025 19:36 ET (00:36 GMT)

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