GameStop has decided to invest in Bitcoin, mirroring Strategy's approach, which led to a 6% rise in after-hours trading for the company.
GameStop's Decision and Market Reaction
GameStop confirmed plans to invest in Bitcoin, resulting in a 6% rise in its shares during after-hours trading. The company's board unanimously approved the plan to allocate a portion of its $4.8 billion in cash to Bitcoin purchases, with the possibility of using future debt or equity to do the same.
Company Plans and Prospects
This decision is part of a broader strategy to transform GameStop into a more efficient, cash-rich company. The new investment policy, approved in December 2023, allows the management team led by Ryan Cohen to oversee the company's investment portfolio.
GameStop's History with Cryptocurrency
This is not GameStop's first foray into cryptocurrency. In 2022, the company launched crypto wallets for managing cryptocurrencies and NFTs, but the service was shut down in 2023 due to 'regulatory uncertainty'.
GameStop's investment in Bitcoin has become part of the company's new financial policy, reflecting its aim to enhance market position and cash reserves.
