In premarket trading, GameStop Corp. shares increased by almost 7% after it was reported that the business is considering investing in bitcoin.
The videogame store and original meme stock (GME), according to CNBC, is thinking about investing in alternative asset classes, such as bitcoin (BTCUSD) and other cryptocurrencies, citing people with knowledge of the situation.
After hours on Thursday, GameStop’s stock first increased by almost sixteen percent before reversing its gains. In premarket trading, the stock has increased by 7.5%. A request for comment on the report from MarketWatch was not immediately answered by the corporation.
Related: After CEO Ryan Cohen’s social media remark ignites bitcoin rumors, GameStop’s stock jumps
When CEO Ryan Cohen shared a photo of himself on social media with Michael Saylor, executive chair of software company and well-known bitcoin player MicroStrategy Inc. (MSTR), the company’s stock shot up earlier this week.
Social media users speculated that GameStop was considering investing in bitcoin as a result of the article.
Businesses in the cryptocurrency sector expect a bright future under the more accommodative Trump administration. Coinbase Global Inc. (COIN), a cryptocurrency trading platform, announced record-breaking earnings Thursday afternoon, signaling “the dawn of a new era for crypto” and predicting robust growth this year. Rival trading site Robinhood Markets Inc. (HOOD) also posted a stellar quarter on Wednesday, driven by cryptocurrency trading and excitement for the upcoming year.
Related: MicroStrategy sells preferred stock to generate an additional $600 million for the purchase of bitcoin
Last year, MicroStrategy, which is now operating under the name Strategy, revealed a $42 billion capital plan to purchase bitcoin, of which $20 billion was recently completed.
The board of directors at GameStop authorized a new investment policy in December 2023 that allows the business to invest in stock securities, among other things. The board authorized Cohen to oversee the investment portfolio.
AMC Entertainment Holdings Inc. (AMC) and GameStop’s stock surged in 2021 amid the meme-stock craze driven by investor Keith Gill, popularly known as Roaring Kitty. The trader, who later increased his ownership of GameStop, referred to himself as a “believer” in the company on his first YouTube livestream in three years, which took place in June 2024.
Related: ‘Futurama’ post from Roaring Kitty seems mysterious. Everyone is attempting to solve it.
In December, GameStop revealed an unexpected profit in its third-quarter earnings. At the end of the quarter, the company’s cash, cash equivalents, and marketable securities totaled $4.616 billion, up from $929.2 million at the end of the same period last year.
Wedbush, an analysis group, believes it is doubtful that GameStop’s core business can earn a profit again.
GameStop’s stock had increased 81.5% in the previous 12 months as of Thursday’s close.
