Meme stock GameStop (NYSE:GME) is considering investing in Bitcoin and other cryptocurrencies, a report in CNBC says. It cites sources familiar with the matter, and says it is a result of GameStop’s move to diversify its assets.
The company’s share price rocketed 7.7% in after hours trading on Thursday, showing investors approval of this potential move. At one point the gain was as high as 20%.
GameStop came to prominence as the original meme stock success, as investors on social media platform Reddit got behind the stock to inflate its price and squeeze out short sellers, causing Melvin Capital Hedge Fund to collapse.
This isn’t the company’s first foray into crypto – in 2022 it launched crypto wallets for its users, but concerns about regulation caused the service to be closed down.
The company’s CEO Ryan Cohen is thought to be behind this push for diversification. He was originally brought on board to modernize the company in the face of ever-changing gamer consumerism. Since Cohen’s appointment, GameStop has cut costs and accumulated funds in order to reinvest it.
Cohen recently posted a photo with chairman of Strategy (formerly MicroStrategy) Michael Saylor, a company known for building up a huge stockpile of Bitcoin. This further stoked rumors of GameStop’s investment into crypto.
