This week GameStop Corp. reported fourth quarter and fiscal year 2024 results. The GameStop phenomenon originally started hitting mainstream news in 2020. It has been a constant amongst interested retail investors ever since. However, today it looks like GameStop is back in the news with another big story. Today we look at what GameStop’s pivot to bitcoin means for the wider crypto and retail investor community.
In GameStop’s financial results there is more than just numbers. There is news about crypto too:
“The company’s investment policy permits investments in certain cryptocurrency assets, including bitcoin and U.S. dollar-denominated stable coins, and if the company acquires bitcoin or U.S. dollar denominated stable coins, the company will be exposed to certain risks allocated with bitcoin or stable coins.”
Whilst this statement doesn’t sound like GameStop is pivoting aggressively to crypto, it does show that the company is considering doing so. Much like with companies like Strategy (previously MicroStrategy), part of the reason for doing this would be to create a reserve within the company. And the market has already reacted:
What GameStop’s Pivot to Bitcoin Means for GameStop’s Stock Price
Since the release of the financial results of GameStop the stock price surged from $25 to $29. This was short lived as the price corrected back down to just below $25 as we write. Once the price was at $81 dollars when the initial GameStop Meme story broke in 2020. Some commentators are expecting a similar stellar performance today if the bitcoin story is true.
And, to confirm the pivot towards bitcoin GameStop published a further update yesterday. In it, GameStop announced that the company is proposing a private offering of $1.3 billion of convertible notes to institutional investors.
“GameStop expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin in a manner consistent with GameStop’s investment policy,” the report concludes.
Could GameStop go to $50? Is it the right time to buy? Or should you just get a bitcoin ETF instead? Either way, crypto is gaining in popularity and demand. Which, in turn, should see an increase in the price of bitcoin too.
#GameStop #RetailInvestor #Bitcoin #Crypto
Author: Andy Samu
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
See Also:
Is GameStop Back? | Disruption Banking
Speculative fictions: GameStop, Bitcoin and beyond | Disruption Banking
Why MicroStrategy Is More Than The Sum Of Its Bitcoins | Disruption Banking
