Based on reports, talk of a crypto push sent GameStop’s shares higher early this year. Rumors in February drove the stock up about 18%. Then in March, when management first mentioned a possible crypto plan, shares jumped another 10%.
GameStop’s core business hasn’t been as lucky. The latest quarter showed a 25% drop in revenue compared to the same period last year. That kind of slide makes it tough to justify a high valuation.
GameStop’s bet on Bitcoin shows just how far the company is willing to go to shake off its image as a fading retailer. The play could pay off if crypto keeps rallying. But it could also backfire if Bitcoin tumbles or the core business doesn’t recover. Either way, this move will be watched closely by both crypto fans and long-time GameStop customers.
Featured image from GameRant, chart from TradingView
