GameStop stocks pop after reporting companies invest in crypto
GameStop (GME) A rise of about 6% in pre-market trading on Friday After CNBC is reported Video game retailers are looking to invest in cryptocurrencies, including Bitcoin.BTC-USD).
CNBC is still investigating options, specifying that the company may not follow the investment. After the bell on Thursday, the stock jumped 20% before returning some profits.
A social media post from GameStop CEO Ryan Cohen over the weekend sparked speculation about GameStop’s interest in Candocurrency. Cohen posted a photo on X with strategy (MSTR) CEO Michael Saylor Early Sunday morning. Saylor has made his company famous for Bitcoin as it now holds, formerly known as MicroStrategy. Over 447,000 tokens.
The strategy was called “the world’s first and largest Bitcoin finance company” in the announcement of a name change last week. Strategic stocks have grown by around 370% over the past year as they continue to buy Bitcoin at almost 100% meetings in cryptocurrency in the same time frame.
When GameStop shares rose after Cohen’s post, Sherwood’s Luke Kawa pointed out Investors may be betting GameStop will follow the strategy’s Bitcoin purchasing model.
“A warm market response to Cohen’s tweet suggests that traders hope Cohen will use GameStop’s $4.6 billion cash and some of its cash-like securities to acquire pages from Saylor’s Playbook (That playbook has one rule: Buy Bitcoin).
Back in December 2023 GameStop’s board gave Cohen The authority to use the company’s capital to make an investment. It opened up how video game operators use cash like holding companies similar to Daily Journals (DJCO) or Berkshire Hathaway (brk-b, brk-a).
Since reaching a high of $64 per share in May 2024 Inside the meme stock revivalGameStop’s stock has fallen, with about 15% off over the past month. The company has not yet reported fourth quarter revenue.
Josh Schafer is a Yahoo Finance reporter. Follow him with x @_joshschaffer.
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