GameStop Corp (NYSE:GME) is deliberating investments into Bitcoin and other cryptocurrencies, according to CNBC, citing sources familiar with the matter. This is a result of GameStop's move to explore the diversification of its assets.
The stock jumped 7.7% after hours Thursday following the news, showing investors' confidence in the potential move. It had been as high as 20%.
In 2021, GameStop became the original meme stock success, as Redditors invested en masse to inflate the stock and squeeze Melvin Capital Hedge Fund, causing that fund to collapse.
GameStop CEO Ryan Cohen is considered to be a pivotal reason for these diversification considerations. Cohen was originally brought on to modernize the company in the face of ever-changing gamer consumerism. Since Cohen's appointment, GameStop has cut costs and accumulated funds in order to reinvest it.
GameStop dipped its toes into the crypto world in 2022, launching crypto wallets for its users. However, concerns about regulation caused the service to shut down.
Cohen recently posted a photo with Michael Saylor, chairman of Strategy (formerly MicroStrategy) on X, further stoking rumors of GameStop's investment in Bitcoin and other cryptocurrencies. Strategy, initially a software stock, has since transitioned into something of a cryptocurrency equity company, investing heaps of money into Bitcoin.