Video game retailer GameStop has announced plans to add Bitcoin to its financial portfolio, receiving support from financial experts.
GameStop Expands Investment Strategy
GameStop announced that its board of directors has approved adding Bitcoin to its treasury. This decision was revealed in their Q4 earnings report. The company plans to use a portion of its corporate cash or future debt issuances to acquire Bitcoin and USD-pegged stablecoins. As of February 1, GameStop's cash reserves stood at over $4.77 billion, a notable increase from $921.7 million a year prior.
Ryan Cohen's Role in Strategy
GameStop CEO Ryan Cohen hinted at this strategic move back in February when he posted a photo of himself alongside Michael Saylor, Strategy's Executive Chairman, at Donald Trump's Mar-a-Lago estate. In the days following the photo's appearance, Strive Asset Management CEO Matt Cole urged Ryan Cohen to use some of the company's substantial reserves to purchase Bitcoin.
T. Rowe Price Conference: Perspectives on Bitcoin
GameStop's decision to acquire Bitcoin coincided with T. Rowe Price highlighting that now is indeed a great time to purchase cryptocurrency. Speaking at the Exchange conference in Las Vegas, Dominic Rizzo, T. Rowe Price's global technology portfolio manager, noted that Bitcoin's price is close to its average cost to mine, making it appealing to investors. At the time of writing, Bitcoin is priced at $87,960.
GameStop's decision to invest in Bitcoin underscores the changing perception of cryptocurrencies by major companies, illustrating growing confidence in this asset class as a means of financial stability.
