Is GameStop also going to hoard coins? Bitcoin investment may be a hope for a turnaround

اصل مصنف: BitpushNews Mary Liu

On the afternoon of February 13th, New York time, the stock price of game retailer GameStop rose sharply in after-hours trading due to news that it might invest in Bitcoin and other کرپٹوکرنسیوں

GameStop is considering investing in cryptocurrencies such as Bitcoin, CNBC reported, citing sources. After the news broke, its stock price soared 20% in after-hours trading, and then fell back to around $26.34.

GameStop has been known as an Internet celebrity stock in recent years. In 2021, driven by the retail investor Keith Roaring Kitty Gill, the stock price soared all the way, and then entered a period of decline. In 2024, Gills multiple appearances once again promoted the rebound of GameStops stock price. However, despite the sharp fluctuations in stock prices, GameStops actual business performance is not optimistic.

GameStop faces transformation pressure due to poor performance

As a game and collectibles retailer that mainly operates in physical stores, GameStop has struggled in recent years amid the industrys overall shift to digitalization.

Wall Street has paid less attention to GameStop, with Wedbush analyst Michael Pachter reiterating his underperform rating on GameStop in a recent report and setting a price target of $10, meaning the companys actual value is almost zero after deducting cash.

Pachter pointed out: The company plans to return to the growth track, but faces insurmountable obstacles. GameStops core business – physical game sales – is being hit by digital downloads and cloud games, causing its revenue and profits to continue to decline. Although the company has achieved short-term profitability by cutting costs and optimizing operations, its long-term growth prospects remain bleak.

Could Bitcoin investment be a hope for a turnaround?

GameStops crypto exploration began in 2022, when the company launched a crypto wallet that allows users to manage cryptocurrencies and NFTs. It also works with industry partners such as the gaming network Immutable to plan to support the trading of in-game assets, avatars, and other digital collectibles.

However, due to regulatory uncertainty, the company closed its NFT بازار in early 2024. Despite this, GameStop has not completely given up its interest in the crypto space.

The news of investing in Bitcoin came just after US President Trump took office. During his campaign, Trump promised to support the cryptocurrency industry, which may be one of the reasons why GameStop reconsidered investing in the crypto field.

It is worth noting that GameStop CEO Ryan Cohen took a photo with MicroStrategy co-founder and executive chairman Michael Saylor last week, further sparking market speculation.

MicroStrategy is the worlds largest corporate Bitcoin holder, with its Bitcoin reserves valued at more than $46 billion. Since it began hoarding Bitcoin in 2020, MicroStrategy has reaped huge returns and has encouraged more and more companies to include Bitcoin on their balance sheets.

Sherwood analyst Luke Kawa noted that GameStops stock price rose after Ryan Cohens tweet, and investors may be betting that GameStop will follow Strategys Bitcoin buying pattern.

Analysts said: The markets enthusiastic reaction to Cohens tweet suggests that traders hope Cohen will use GameStops $4.6 billion in cash and cash-like securities to emulate Michael Saylors play. (That strategy has only one rule: buy Bitcoin).

Whether GameStop will follow suit and officially enter the field of cryptocurrency has not yet been officially confirmed, but this news undoubtedly adds new imagination to the market.

With a cash reserve of $4.6 billion, how will Ryan Cohen lead GameStop out of trouble?

Ryan Cohen, co-founder of e-commerce company Chewy, bought GameStop shares in 2020 and joined the board of directors in 2021. Under his leadership, GameStop began to focus on cutting costs and streamlining operations to ensure the profitability of the business, even though its growth remains sluggish. As of November 2, 2023, GameStop has accumulated $4.6 billion in cash reserves and has been using these funds for investment.

In December 2023, GameStops board of directors approved a new investment policy that allows Cohen, two independent board members, and other necessary personnel to manage the companys securities portfolio. These investments must comply with policy گائیڈlines or be approved by a unanimous vote of the committee or a majority vote of the board.

Although the company is currently facing the dual pressures of declining performance and industry transformation, Bitcoin, as an emerging asset with high volatility and high returns, may provide GameStop with a new growth path. Whether GameStop can make a comeback by hoarding coins is still full of uncertainty.

This article is sourced from the internet: Is GameStop also going to hoard coins? Bitcoin investment may be a hope for a turnaround

Related: 24H popular currencies and news | Russia is using Bitcoin in foreign trade; the number of crypto investors in South Kore

24 H popular currencies 1. Popular currencies on CEX CEX top 10 trading volume and 24-hour rise and fall: BTC: +0.4% ETH: -0.3% XRP: -1.7% SOL: -1.3% DOGE: -1.3% PEPE: -5.0% MOVE: +23% LINK: -3.8% SUI: -4.1% HBAR: -3.2% 24-hour price increase list (data source: OKX): DAO: +15.78% RUNECOIN: +14.64% RADAR: +12.72% PHA: +12.49% ZENT: +9.02% GEAR: +7.31% AGLD: +7.02% RSR: +5.18% SD: +4.66% ERN:+ 4 .48 % 2. Top 5 popular memes on the chain (data source: GMGN): PENGU relaxboy OGCCHILLGUY Fartcoin arc 3. Todays most searched currencies URO and RIF: two leading projects in the DeSci sector. Affected by the news that BIO Protocol will airdrop BIO to URO and RIF holders, URO rose by more than 50% in 24 hours, and its market value returned to 80…