GameStop, whose stock thrived on the internet in 2021, is hinting at a cryptocurrency move, according to its latest filing. The company’s board has approved a plan that would allow it to invest in Bitcoin and US-dollar-backed stablecoins.
As per reports, GameStop has now added digital assets to its investment policy, as per its latest filings. The company’s cash reserves have grown significantly, reaching about $4.8 billion in early February—from slightly below $1 billion the prior year. Having access to so much cash gives lots of room for diversification.
GameStop’s fourth-quarter earnings report of March 25 fueled speculation about its potential Bitcoin purchases. The company’s net sales for the quarter were $1.283 billion and $3.823 billion for the fiscal year.
We are following a strategic trend.
GameStop’s interest in Bitcoin comes after other companies have added digital assets to their financial playbook. In February, speculation of its crypto plans intensified after CEO Ryan Cohen posted an uncaptioned photo of himself with a famous Bitcoin supporter, leading to speculation of a BTC buy.
A hedge fund wanted GameStop to use some of its cash to buy Bitcoin. If the transaction happens, then the company will lead the way for cryptocurrency in gaming. GameStop has not confirmed any purchases yet, but recent policy changes indicate that it may do so soon.
Should GameStop acquire Bitcoin, it would further enhance its separation from the retail trade and give it an aura of a future-oriented company. GameStop’s foray into Bitcoin will likely have investors and crypto enthusiasts alike salivating at the prospect of the company.
