GameStop Bets on Bitcoin, Sending Investors into a Frenzy!

After several months away from the spotlight, GameStop makes a resounding return that leaves no one indifferent. The famous video game retailer, which has become an icon of the “meme stock” phenomenon, is now considering investing in Bitcoin. This rumor was enough to send GME shares soaring by 20% in after-market trading. This is certainly good news for crypto investors, who are already buzzing after an enigmatic photo of Ryan Cohen with Michael Saylor.

GameStop and Bitcoin: A marriage of convenience or a risky bet?

GameStop, a Solana memecoin whose financial health fluctuates between hope and uncertainty, could soon join the very exclusive club of publicly traded companies holding Bitcoin. According to several sources, the company is actively exploring the possibility of acquiring BTC with its $4.6 billion in cash.

A move that would resemble that of MicroStrategy, a pioneer in the field under the leadership of Michael Saylor.

If this strategy were to materialize, it would mark a turning point for GameStop, which is desperately seeking a viable business model. Some see it as a masterstroke to escape stagnation, while others view it as a risky plunge into the unknown.

The very skeptical Peter Schiff was quick to respond:

“GameStop, a company without a viable business plan, is making one last attempt by announcing that it might buy Bitcoin. The irony is that BTC is even more overvalued than GME.”

On the other side of the spectrum, investors like Peter Hasselblad fervently support this idea:

“If Ryan Cohen does not establish a Bitcoin treasury, it will be the dumbest decision in stock market history.”

Between enthusiasm and cynicism, GameStop is more than ever at the heart of the debate.

Some key figures:

• GameStop’s stock has nearly doubled in a year;
• The announcement caused the stock to rise by 20% in after-market trading;
• MicroStrategy, renamed Strategy, currently holds several billion dollars in BTC.

A new crypto adventure for GameStop

GameStop’s interest in crypto did not come out of nowhere. In 2022, the company had already attempted to make a foray by launching crypto wallets to manage NFTs and tokens. A project that was aborted in 2023, officially due to “regulatory uncertainty”.

Today, the firm seems ready to give it another shot, but this time on a whole different level.

The involvement of Ryan Cohen, the architect of GameStop’s revival, is being closely scrutinized. Since he joined the board in 2021, the businessman has made bold decisions, often met with criticism.

The recent publication of a photo with Michael Saylor on X has only fueled speculation. Even though the founder of MicroStrategy has no official role in this strategic thinking, the parallel between the two companies is evident.

GameStop, which has until now focused on cost-cutting and optimizing its operations, may see Bitcoin as an opportunity for diversification and profitability.

It remains to be seen whether this bet will pay off or if it will be yet another episode in the stock market saga surrounding GME.

Ultimately, GameStop is no longer quite the same company. Once perceived as a dying dinosaur of video gaming, the retail giant is now exploring unprecedented paths. Ironically, just a few months ago, its CEO Matt Furlong was fired, officially for his crypto and NFT ambitions. Today, his replacement Ryan Cohen seems to want to take the same route… perhaps with better timing.