Ryan Cohen, CEO of Gamestop Corp (NYSE: GME), shared a photo with Microstrate Inc (Nasdaq: Mstr) on Sunday.
The shares of both companies rise today.
Investors respond positively to the news because they read it as a hint that Gamestop may consider changing its strategy to focus on the largest encrypted currency in the world – Bitcoin.
A similar transformation of Microstrategy in 2020 has proven somewhat profitable for the business intelligence company in recent years. Its shares have achieved approximately 25 times over the past four years.
On the other hand, Gamestop has approximately 70 % during the same period.
Does GME have experience with Crypto?
If Gamestop has already turned its concentration into Bitcoin, this will not be the first time to dip the toe of the encryption.
The Gaming Parchandise has previously brought up the encryption portfolio – a service that was later Close due to organizational uncertainty.
Cohen was appointed to Gamestop in 2021 well, as investors believed that his experience in e -commerce could help modernize traditional retail stores and help them in connection with changing habits of workers.
However, GME shares continue to struggle until now regardless of short -term gatherings on a broader scale as Meme stock phenomenon.
Mstr has surpassed Bitcoin since 2020
Gamestop shares are very similar to the shares of Gamestop, Microstrate Inc, or Bitcoin agent that recently changed his name to the “strategy”, also common among retailers.
Since 2020, the listed NASDAQ has accumulated about $ 47 billion from BTC. Therefore, a large part of its value is now associated with its bitcoin rights.
In fact, the company’s BTC strategy enabled its shares of the assembly from only $ 14 at the beginning of the epidemic to $ 334 in writing – a 25x return that outperforms Bitcoin at 10x revenue during the same period.
However, MSTR shares are much more expensive than Bitcoin at $ 100,000 in writing.
The strategy was uploaded to BTC last week
Also on Monday, Microstrategy said it sold more than half a million of its joint shares last week to generate about $ 179 million of net returns.
In addition, the company resorted to a general offer of its favorite shares to raise another $ 563 million after the discounts.
Mstr use all these funds to upload it to 7,533 Bitcoins between February 3road And February 9Y With an average BTC price 97,255 dollars.
Note that the strategy to the world’s largest encryption is made by equal equality among analysts as well.
In a recent report, the KBW Client investment company told that Microstrategy can rise to $ 560 translated into about 75 % of the current levels.
However, MSTR shares currently do not pay profits. Therefore, it remains somewhat attractive to investors in search of an additional means of negative income.
The post is Gamestop preparing to transform Bitcoin like Microstrategy? First appeared on Invezz
