Key points:
- GameStop shares rise
- Company will be buying BTC
- Earnings report is mostly good
OG meme stock is only doing what fits it best — Bitcoin will be added to its treasury as a reserve asset.
🤝 GameStop Shares Jump 8%
- GameStop stock
GME soared 8% after the company said it will be splurging its corporate cash on Bitcoin purchases. That’s the biggest takeaway from the video-game retailer’s quarterly earnings update. The company board has unanimously approved a plan to start accumulating the orange coin without a set maximum on the amount. - In a filing, GameStop said “a portion of our cash or future debt and equity issuances may be invested in Bitcoin.” The decision came after CEO Ryan Cohen met with Michael Saylor of Strategy MSTR — the world’s largest corporate Bitcoin holder.
🔥 Reviving a Struggling Meme Stock
- “Bitcoin is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful,” GameStop said in its filing with the Securities and Exchange Commission.
- Getting exposure to Bitcoin is another attempt by Cohen to spark enthusiasm for the stock after it’s gone through a painful period of share-price losses. Shares are down more than 20% since early January.
📈 Net Income Tops Estimates
- Besides the big crypto news, GameStop reported a not-so-bad quarter. For the three months to February 1, the OG meme stock picked up net sales of $1.28 billion, below Wall Street’s consensus views of $1.48 billion. Adjusted earnings of 29 cents topped the 8 cents eyeballed by analysts.
- Net income landed at a solid $131.3 million, comfortably beating the $33 million expected. It also announced it had completed its divestiture in Italy and exited Germany’s market entirely.
