GameStop shares experienced a surge of more than 6% in premarket U.S. trading on Friday, following an after-hours spike of up to 20%. This sharp increase followed reports that the company is evaluating potential investments in cryptocurrency. While GameStop has not yet finalized its decision, the news has generated significant investor interest and speculation.
GameStop’s Crypto Consideration
As one of the most well-known video game retailers, GameStop gained global attention in 2021 as a key player in the meme stock movement. Now, the company is reportedly assessing whether investing in digital assets aligns with its long-term financial strategy.
However, insiders suggest that GameStop has not yet made a firm commitment. Depending on its assessment of the risks and rewards, the company may still choose to forgo crypto investments.
Reports have also confirmed that Michael Saylor, chairman of Strategy—formerly known as MicroStrategy—is not involved in these discussions. Strategy became a leading Bitcoin holder after it started purchasing the cryptocurrency in 2020 to counteract weaknesses in its software division. Since then, the firm has benefited significantly from Bitcoin’s increased adoption and valuation.
GameStop’s Previous Crypto Ventures
This is not GameStop’s first attempt at entering the digital asset market. In 2022, the company introduced a crypto wallet, enabling users to store and manage digital assets, including nonfungible tokens (NFTs). However, the service was discontinued in 2023 due to shifting market conditions and declining demand for NFTs.
Since Ryan Cohen took over as CEO, GameStop has been undergoing a transformation to adapt to changing consumer behavior. Traditionally reliant on physical store sales, the company has pivoted toward digital platforms to meet the rising demand for online gaming purchases. To support this transition, it has also implemented aggressive cost-cutting measures and accumulated significant capital reserves for strategic reinvestment.
Additionally, in late 2023, GameStop’s board authorized Cohen and two independent board members to oversee its securities investment portfolio. This decision fueled further speculation about potential new investment directions, including cryptocurrency.
Is GameStop a Smart Investment Right Now?
As GameStop makes headlines, investors are questioning whether the stock is an attractive opportunity. Many stocks in today’s market appear overvalued, making it difficult to identify genuine investment potential. However, some financial analysts believe that GameStop could be among the undervalued stocks with strong upside potential.
AI-driven investment tools have analyzed GameStop alongside thousands of other stocks, searching for hidden value. In 2024, AI-based predictions identified several stocks that later gained over 30%. Some experts suggest that GameStop could follow a similar trajectory if its strategic moves align with future market trends.
Market Response and Future Implications
GameStop remains a highly volatile stock, largely due to its involvement in the meme stock phenomenon. While the company has struggled with declining in-store sales, it has continuously sought ways to stay relevant in an increasingly digital landscape. Its potential investment in cryptocurrency could mark a bold step forward, signaling its willingness to embrace modern financial trends.
The cryptocurrency market, however, is known for extreme fluctuations. While some companies have profited from digital asset investments, others have faced substantial losses. If GameStop proceeds with this move, it could position itself as an innovator in bridging gaming retail with blockchain technology. However, the company must tread carefully, as it has yet to announce any concrete plans.
For now, investors remain eager to see whether GameStop will take the leap into crypto or choose a more traditional investment path. Whatever decision the company makes, it continues to attract attention in both stock and digital asset markets, reinforcing its reputation as one of the most closely watched companies on Wall Street.