The video game retailer GameStop (GME) is making headlines again, this time for its potential entry into Bitcoin (BTC). The company is considering adding Bitcoin and other cryptocurrencies to its balance sheet, according to a report from CNBC. Following the news, GME stock, a symbol of meme stock mania, spiked as much as 7% in after-hours trading.
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“GameStop is exploring it, but nothing is final,” a source close to the company stated. Any potential investment would require approval from either a special committee or the full board.
Crypto Ambitions Spark Market Excitement
GameStop has dabbled in the crypto space before, launching an NFT marketplace and a digital wallet in 2022. However, the company shut it down in 2023, citing regulatory uncertainty.
Now, with $4.6 billion in cash on hand, along with very little long-term debt (less than $10 million), Bitcoin is reportedly on the table as a strategic investment.
While investors await confirmation, a crypto move could signal a major shift for GameStop, drawing new interest while facing market volatility and regulatory hurdles.
Ryan Cohen’s Cryptic Post Fuels Buzz
Amid growing speculation, GameStop CEO Ryan Cohen recently posted a photo featuring Michael Saylor, the co-founder of Strategy (MSTR) (formerly MicroStrategy), a company known for its massive Bitcoin holdings. The post quickly went viral, sparking speculation that GameStop might adopt a similar approach by integrating Bitcoin into its balance sheet.
However, sources clarified that Saylor is not directly involved in the company’s crypto discussions.
Is GME Stock a Buy?
Currently only one analyst follows GME stock, Wedbush’s Michael Pachter. He has a price target on the stock of $10, which is 62.14% below where the shares currently trade.
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