According to informed sources, GameStop (GME.US) is considering investing in Bitcoin and other cryptocurrencies. Boosted by this news, as of the time of writing, GameStop's stock rose over 7% in after-hours trading on Thursday, with the after-hours increase at one point approaching 19%.
GameStop launched a cryptocurrency wallet in 2022, allowing users to manage their cryptocurrencies and NFTs, but closed the service in 2023 due to &#34;regulatory uncertainty.&#34; Three informed sources stated that GameStop is exploring investments in alternative assets, particularly cryptocurrencies. The company may also decide not to invest. The sources indicated that the company is still considering whether this makes sense for its business.
Last weekend, GameStop CEO Ryan Cohen posted a photo with MicroStrategy (MSTR.US) co-founder and chairman Michael Saylor on social media platform X. MicroStrategy is the publicly traded company that holds the most Bitcoin and has seen a significant increase in its market value driven by the rise in Bitcoin prices, despite the stock's volatility. However, sources revealed that Michael Saylor is currently not involved in GameStop's discussions regarding cryptocurrency investments.
Ryan Cohen began purchasing GameStop stock in 2020 and joined the company's board in 2021. As GameStop became a popular meme stock, Ryan Cohen's extensive e-commerce experience sparked hopes that he could help modernize this brick-and-mortar retailer. However, the company is still struggling to adapt to the changing consumption habits of gamers.
Under Ryan Cohen's leadership, GameStop is focused on cutting costs and streamlining operations to ensure profitability even if the business does not grow. According to a document submitted to securities regulators last December, as of November 2 of last year, GameStop had accumulated $4.6 billion in cash reserves and has been using these funds for investments.
Additionally, it is worth mentioning that in December 2023, GameStop's board approved a new &#34;investment policy&#34; allowing Ryan Cohen, along with two independent board members and other necessary personnel, to manage the company's securities investment portfolio

GameStop is considering investing in Bitcoin and other cryptocurrencies, and as a result, its stock price rose over 7% in after-hours trading. The company launched a crypto wallet in 2022 but shut it down in 2023 due to regulatory uncertainties. According to insiders, GameStop is still evaluating the significance of this investment for its business. CEO Ryan Cohen's photo with MicroStrategy founder Michael Saylor has attracted attention, but Saylor did not participate in the investment discussions with GameStop. GameStop currently has a cash reserve of $4.6 billion, focusing on cost reduction and operational streamlining

- GameStop (GME.US) is reportedly considering investing in Bitcoin and other cryptocurrencies, leading to a more than 7% increase in its stock price after hours.  
- The company previously launched a crypto wallet in 2022 but closed it in 2023 due to regulatory uncertainties, and it is now exploring alternative asset investments.  
- CEO Ryan Cohen, who has been acquiring GameStop shares since 2020, is focusing on cost-cutting and operational efficiency while the company has a cash reserve of $4.6 billion for potential investments.