In a big step for the retail video giant, Gamestop announced on Tuesday that the Board of Directors had unanimously agreed to a plan to use the cash companies reserves to invest in the largest encryption currency in the encryption market, Bitcoin (BTC).
This decision reflects a strategy through the strategy of Bitcoin Proxy Now (Microstrategy) by Microstrategy, which has occupied newspaper headlines for its great acquisition of Bitcoin led by its co -founder Michael Celor.
With $ 4.8 billion in cash, Gamestop Eyes Bitcoin expansion
after advertisementGamestop shares increased by more than 6 % in extended trading, reflecting the investor enthusiasm for the new direction of the company.
This news is in line with previous reports from CNBC in February, which hinted at Gamestop’s intentions to integrate bitcoin and other encrypted currencies into their financial strategy.
As of February 1, Gamestop reported about obtaining about $ 4.8 billion in cash, and the company indicated that part of these funds may be allocated, as well as possible future debts and equality, to Bitcoin and Stablecoins that were identified in the US dollar.
It is worth noting that Gamestop did not impose a roof on the amount of bitcoin that it might buy, indicating an obligation to explore the cryptocurrency market without restrictions.
Seeing Ryan Cohen
This in encrypted currencies is part of a broader strategy by Gamestop CEO, Ryan Cohen, to revitalize the troubled brick and mortar company operations.
Under the leadership of Cohen, Gamestop focused on cost reduction and simplification measures to ensure long -term profitability. By adding Bitcoin to its public budget, Gamestop aims to update its financial approaches and attract a new generation of investors.
However, the company also recognized the risks associated with this project. In a file with the Securities and Stock Exchange Committee (SEC), Gamestop indicated that Bitcoin is very volatile assets, subject to significant fluctuations.
The company has warned that the Bitcoin strategy has not yet been tested and has eventually proved that it is unsuccessful, highlighting the risks inherent in investing in the encrypted currency. In conjunction with the cryptocurrency announcement, Gamestop also reported positive financial results for the fourth quarter.
The company recorded a net income of 131.3 million dollars, more than twice 63.1 million dollars in the same period last year. This financial performance, along with the new Bitcoin strategy, has led to optimism among investors about the future of Gamestop.
At the time of writing this report, BTC witnessed a remarkable recovery of 7 % on the weekly timetable, causing a brand of $ 88,000. This comes weeks after heavy sales pressure, which witnessed the decline in pioneering encryption to the level of $ 76,000 for the first time since November 2024.
Distinctive image from Dall-E, Chart from TradingView.com
