GameStop’s crypto pivot boosts shares of one-time retail investor favorite
GameStop shares were back in action as the company’s move to hoard bitcoin brought retail investors back to their favorite meme stock.
The video game retailer’s shares rose 11.6% to $28.35 before the bell on Wednesday after GameStop said it would invest in bitcoin at a time when its primary brick-and-mortar business is struggling to draw customers.
“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,” said Dan Coatsworth, investment analyst at AJ Bell.
GameStop’s update to its investment policy on Tuesday to add bitcoin as a treasury reserve asset mirrors the strategy of exchange operator Strategy, the largest corporate holder of bitcoin.
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