GameStop is considering Bitcoin investments after a 20% sales drop, despite holding $4.6 billion in cash reserves.
Reports say that GameStop is thinking about adding Bitcoin and other crypto assets to its stock. This comes just days after CEO Ryan Cohen met with Bitcoin supporter Michael Saylor.
Three people told CNBC on Thursday that GameStop is interested in investing in digital assets. Based on its most recent SEC report, the video game store, which is known for the short squeeze in 2021, had $4.6 billion in cash on hand at the end of Q3 2024.
As of now, though, sources say Saylor is not part of the company’s internal crypto talks. Even though talks are still going on, GameStop may decide not to make any investments in the end.
Is Bitcoin able to help GameStop with its store problems?
After seeing a 20% drop in sales in Q3 2024, GameStop is looking into Bitcoin and other crypto investments, even though they have $4.6 billion in cash on hand. Its hardware and software groups both did worse than they did the previous year.
As digital game downloads change the industry, the company’s old-fashioned retail approach is under more and more pressure.
According to a report by Seeking Alpha, GameStop’s main business is getting weaker, which could help the company become a “Bitcoin Consumer Bank,” which could lead to price gains.
Yahoo Finance says that after the Bitcoin story, GameStop shares (GME) went up by up to 20%.
In July 2022, GameStop opened an NFT store, which was their first move into the digital asset market. There was “regulatory uncertainty,” so it cut back in early 2024. In late 2023, it shut down its crypto wallet business.
The board of GameStop changed its investment strategy in January. This gave CEO Ryan Cohen and his team more freedom to invest in stocks and assets other than short-term, investment-grade securities.
