GameStop To Invest Corporate Cash In Bitcoin, Following In Footsteps of MicroStrategy
by BeauHD from on (#6W60J)
GameStop announced it will invest part of its corporate cash in bitcoin and stablecoins, following MicroStrategy's lead. The meme stock jumped more than 6% in extended trading Tuesday following the news. CNBC reports: The video game retailer said a portion of its cash or future debt and equity issuances may be invested in bitcoin and U.S. dollar-denominated stablecoins. As of Feb. 1, GameStop held nearly $4.8 billion in cash. The firm also said it has not set a ceiling on the amount of bitcoin it may purchase. The company said the move could expose it to volatility associated with cryptocurrency prices. "Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful," GameStop said in a U.S. Securities and Exchange Commission filing.
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