GameStop Stock Rises After Reports of Potential Bitcoin Investments
GameStop’s stock surged after reports of potential investments in Bitcoin, increasing from about $26 to nearly $31 following a CNBC claims. The company’s previous endeavors in the Web3 space and collaborations have influenced its current evaluation of cryptocurrency options, particularly in light of recent developments and industry trends.
GameStop’s stock price experienced a notable increase following reports of the company’s potential engagement in Bitcoin investments. On Thursday, the company’s shares surged from approximately $26 to a peak near $31 after a CNBC report indicated that GameStop is contemplating involvement in Bitcoin and other cryptocurrencies. The report referenced anonymous sources familiar with the company’s activities.
The stock ultimately closed the trading day at around $26.30, transitioning to an after-hours trading price near $28.50. Decrypt attempted to obtain a response from GameStop regarding the report but did not receive an immediate reply.
Previously, GameStop had ventured into the Web3 landscape by launching an NFT marketplace and a crypto wallet. Collaborating with the gaming network Immutable and various partners, the company aimed to facilitate transactions involving tokenized in-game assets and digital collectibles. However, the NFT marketplace was halted in early 2024 due to “regulatory uncertainty.”
Should the CNBC report hold true, GameStop may be reevaluating its crypto strategy, particularly in light of the pro-crypto stance of former President Donald Trump, who has expressed intentions to support the cryptocurrency sector in the United States. This consideration also follows the ascendance of Strategy (formerly MicroStrategy), a software company recognized for possessing the largest corporate Bitcoin portfolio, valued at over $46 billion.
Strategy began accumulating Bitcoin in 2020, achieving significant success when Bitcoin surpassed $100,000 for the first time in late 2024. The company’s continued acquisition of Bitcoin has inspired a growing number of corporations to include the cryptocurrency within their financial strategies. Notably, GameStop CEO Ryan Cohen was recently photographed with MicroStrategy co-founder Michael Saylor, intensifying speculation ahead of the recent report about GameStop’s cryptocurrency interests.
In recent years, GameStop has become synonymous with the “meme stock” phenomenon, largely propelled by social media influencers, including Keith “Roaring Kitty” Gill, who played a pivotal role in driving the stock’s price surge in 2021. Gill has intermittently resurfaced in 2024, reviving interest in the retailer’s shares, although his recent activity has been limited.
In conclusion, GameStop’s stock price is witnessing renewed interest following reports of potential investment in Bitcoin. The company’s prior ventures into Web3, coupled with the evolving landscape of corporate cryptocurrency investments, signify a possible shift in strategy. As GameStop navigates these developments, its association with influential figures in the crypto space and the legacy of the meme stock phenomenon continue to shape investor perceptions.
Original Source: decrypt.co
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