GameStop stock surges amid Bitcoin investment rumors

GameStop (GME) stock experienced a surge in after-hours trading following reports that the company is considering investing in Bitcoin (CRYPTO:BTC) and other cryptocurrencies.

The stock initially jumped as high as 18% before settling to around a 7% gain.

This speculation was fueled by a CNBC report citing sources familiar with the matter.

The report indicates that GameStop is evaluating alternative asset classes, with a particular focus on cryptocurrency.

However, it remains uncertain whether the company will proceed with these investments, as it is still assessing the alignment with its overall business strategy.

GameStop currently holds $4.6 billion in cash reserves and approved a new investment policy in December 2023, giving management the authority to invest in securities assets that meet specific guidelines.

Speculation about GameStop's potential interest in cryptocurrency was further ignited by a social media post from CEO Ryan Cohen, who shared a photo on X featuring Strategy CEO Michael Saylor.

However, sources have clarified that Saylor is not involved in GameStop's cryptocurrency investment discussions.

Strategy, formerly known as MicroStrategy, is known as the largest corporate holder of Bitcoin.

Adding to the frenzy, a Solana-based (CRYPTO:SOL) memecoin named GameStop (GME), with no official connection to the company, also saw a 45% price increase.

In the past, GameStop launched a cryptocurrency wallet business in 2022, but closed it in 2023 due to regulatory concerns.  

It also launched an NFT marketplace which was also shuttered in January 2024.