{ “title”: “GameStop’s Crypto Pivot Lifts Shares of Former Meme Stock Favorite”, “description”: “GameStop’s foray into cryptocurrencies has caught investor attention, boosting the company’s stock price.”, “tags”: “GameStop, crypto, bitcoin, meme stock, investment”, “rewritten_content”: “GameStop shares surged on Wednesday as the video game retailer, once at the center of a ‘meme stock’ trading frenzy, made a significant move into cryptocurrencies. The company’s shift in strategy, adding bitcoin as a treasury reserve asset, has revitalized investor interest.
Reuters/Brendan McDermid/File Photo
Shares in GameStop rose by 12% before the market opened following the announcement. This strategic move mirrors that of exchange operator Strategy, formerly known as MicroStrategy, the largest corporate holder of bitcoin. Many see GameStop’s shares as a proxy for the digital currency because of its elevated exposure.
The rise in the stock comes as U.S. President Donald Trump has increased his focus on digital assets, which in turn has boosted interest in cryptocurrencies. “Retail operations aren’t the reason why GameStop’s shares are flying – they never are. This time it’s about the company’s move into bitcoin,” explained Dan Coatsworth, an investment analyst at AJ Bell.
According to Capital.com analyst Daniela Hathorn, GameStop’s shares could experience increased volatility given their connection to the digital currency. Bitcoin itself, after reaching a six-figure all-time high over two months ago, is now trading around $88,000, down nearly a fifth from its January peak.
GameStop has also benefited from aggressive cost-cutting measures, which helped the company more than double its net income to $131.3 million in the fourth quarter. During the same period net sales fell by around 30% to $1.28 billion, as the company has closed hundreds of stores as part of its pivot to e-commerce, a strategy led by CEO Ryan Cohen.” }
