GameStop, the video game retailer that became a meme-stock sensation a few years back, is making a big move into cryptocurrency. The company’s board just voted to add Bitcoin to its treasury reserves.
Bitcoin as a Reserve Asset
This means GameStop will start investing some of its cash in Bitcoin, alongside stablecoins (cryptocurrencies pegged to the US dollar). The company says this is all part of a plan to boost shareholder value by diversifying its investments. They haven’t set a limit on how much Bitcoin they’ll buy, and they could sell it off at any time.
Following the Trend
GameStop isn’t the first big company to add Bitcoin to its reserves; companies like MicroStrategy and Tesla have already done so. This move has been hinted at for months by CEO Ryan Cohen.
Market Reaction
The announcement sent GameStop’s stock price up by 6%. Bitcoin itself was also trading higher at the time of the announcement. With GameStop holding around $4.76 billion in cash, this could be a significant investment in the cryptocurrency market.
