Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the news of GameStop considering to invest in Bitcoin,
GameStop to Invest in Bitcoin
The video game retailer giant and meme stock GameStop have revealed they are considering investing in bitcoin and other cryptocurrencies. This news comes from a source familiar with the matter and noted that GameStop is exploring investments in alternative asset classes. This would include crypto and Bitcoin, and the news saw shares of GameStop increase in value by as much as 20%.
The videogame retailer is still in the process of figuring out if this investments would make sense for its business and they could yet decide not to follow through with the investments. The company considers itself still in the process of figuring out the finer details and the long term viability of any such investment for the business.
Last week GameStop CEO Ryan Cohen met with Strategy's founder and Executive Chairman Michael Saylor. A picture was posted on social media platform 'X' of the pair, with Saylor the largest corporate holder of Bitcoin. While Saylor will play no part in any discussions for GameStop regarding investments in crypto and Bitcoin, he is likely to have painted a positive picture of the situation for Cohen.
https://x.com/ryancohen/status/1888098643732811864
Back in 2022 GameStop made their first ventures into the crypto space as they launched crypto wallets for users to manage their crypto and nonfungible tokens. By 2023 the firm decided to close down the service due to “regulatory uncertainty.” GameStop also launched their official NFT marketplace on Halloween in 2022 and it had a focus on gaming assets and a partnership with ImmutableX, an Ethereum layer 2 blockchain solution. This marketplace was then closed in January 2024 due to its relatively low impact on the overall NFT trading landscape.
Cohen is the co-founder of Chewy and bought shares in GameStop back in 2020. He joined the board in 2021 and later went on to become one of the key players at the firm as GameStop became one of the key meme stocks in the trading mania. There were many hopes that Cohen could help bring GameStop into the digital age and modernise their brick-and-mortar retail model. His e-commerce experience has been a key factor in this but the retailer is still struggling to adapt to changing spending habits by gamers. GameStop has however managed to focus on cost cutting and streamlining operations meaning the business is profitable even though it is not growing. Their balance sheet as of the end of the third quarter in 2024 noted a cash balance of $4.616 billion and total liabilities of less than $1.5 billion. Therefore the firm would be in a strong position to invest in Bitcoin and other assets.
Have a great day.
Peace. CryptoGod-1.
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