A general picture of the Gamestop logo on one of the shops in the city center of Cologne, Germany.
Ying Tang | Nurphoto | Getty images
Video Game Retailer played Meme -stock Gamestop
Gamestop investigates investments in alternative activa classes, including in particular crypto and bitcoin, according to three sources. Gamestop shares rose no less than 20% in extensive trade after the news.
The retailer could decide not to follow the investments. The company is still finding out whether this is useful for the GameStop company, according to one source.
Last weekend CEO Ryan Cohen posted a photo on social media site X with Michael Saylor, co-founder and chairman of Micro strategyBitcoin’s largest company holder. However, Saylor is not currently involved in Gamestop’s discussion about crypto investments, two of the sources said.
In 2022, Gamestop Crypto portfolios launched users with which users were able to manage their crypto and non -FungiTle tokens. However, the company closed the service in 2023, referring to ‘regulatory uncertainty’.
Cohen, co-founder of Chewy, bought shares in Gamestop in 2020 and joined the board in 2021 when Gamestop became one of the most important meme shares in trading mania. His e-commerce experience has raised the hope that he could help modernize the physical retailer, but the company still has difficulty adapting to changing spending habits by gamers.
Under the leadership of Cohen, Gamestop has focused on reducing costs and streamlining activities to ensure that the company is profitable, although it is not growing. From November 2, the company had collected a cash stack of $ 4.6 billion and used those funds for investments, according to a securities application in December.
Companies considering adding Bitcoin to their balance would follow in the footsteps Micro strategy. In recent years, that company, recently renamed strategy, has bought billions of dollars from Bitcoin and effectively transforming from a software area to a Bitcoin stinging vehicle.
The decision has helped a fast, albeit volatile, to rise for the shares of the strategy.
In December 2023, the Gamestop board approved a new ‘investment policy’. This allows Cohen, plus two independent board members and other necessary employees, to manage the portfolio of GameStop of securities investments. These investments must comply with the guidelines of the policy, or are approved by the Commission by a unanimous voice or the entire council of the majority.