GameStop Surges 18% After Hours Amid Speculation of Crypto Investment Plans

GameStop saw its stock price soar by 18% in after-hours trading on February 13, following reports that the retailer is contemplating investments in cryptocurrencies, including Bitcoin. This surge in GameStop's stock came after a CNBC report, which cited multiple sources familiar with the matter, suggesting the company may diversify its portfolio with alternative assets like Bitcoin.

At the peak of the after-hours trading, GameStop's stock reached $31.30, though it slightly cooled off, settling at $28.36—a still notable 7% increase. The speculation about GameStop's potential cryptocurrency investments comes on the heels of an unofficial GameStop Solana-based memecoin (GME), which saw a remarkable 45% surge before also experiencing a dip. The memecoin, which is not connected to the retailer, reached a high of $0.0027, before stabilizing at $0.0025, according to CoinGecko data.

Speculation Fueled by CEO's Social Media Activity

The rumors surrounding GameStop’s potential crypto investment were further stoked after CEO Ryan Cohen posted a photograph on social media platform X on February 7. In the image, Cohen was seen with Michael Saylor, the executive chairman and co-founder of Strategy, a company with significant involvement in Bitcoin investments. This led to increased speculation that GameStop could be considering adding crypto to its balance sheet, a strategy that has gained momentum among several companies in recent years.

However, the report from CNBC clarified that Michael Saylor is not involved in GameStop's possible plans to acquire Bitcoin, according to two separate sources. Despite this, the idea of GameStop embracing cryptocurrencies, like many other companies before it, is generating significant buzz.

A Shift Toward Digital Assets

GameStop has been no stranger to the world of digital assets, having previously explored the space with a cryptocurrency wallet and even launching an NFT marketplace. However, both ventures were eventually shut down— the wallet in November 2023 and the NFT marketplace in January 2024— due to growing concerns over regulatory uncertainty. These setbacks have not deterred the company from potentially reentering the cryptocurrency space, with its latest consideration signaling a shift in strategy towards embracing alternative investments.

GameStop's potential move into the crypto market comes as more companies are looking to follow the example set by firms such as Strategy and Japanese mobile gaming company Gumi. On February 10, Gumi announced its purchase of $6.6 million worth of Bitcoin, while Metaplanet revealed it had raised $26.1 million to acquire more of the cryptocurrency, bringing its Bitcoin holdings to over 1,700 BTC, valued at around $170 million.

The Legacy of GameStop and Meme Stocks

This speculation about GameStop's crypto investment plans comes amidst the broader backdrop of the company's iconic role in the meme stock frenzy of 2021. GameStop became a household name after a massive short squeeze, driven largely by retail investors, sent the stock price surging by over 1,000% in a matter of weeks. The event took on a cultural significance, symbolizing the power of retail investors against institutional players such as hedge funds.

As GameStop explores new avenues for growth and innovation, speculation about its entry into crypto space further demonstrates the retailer's willingness to pivot and evolve in a rapidly changing market. Whether or not it follows through on these cryptocurrency investments remains to be seen, but for now, GameStop’s stock surge highlights the continued interest in its business moves and the broader potential for companies to embrace digital assets as part of their growth strategy.