What's Going On With GameStop Shares Friday?

GameStop Corporation GME shares are trading higher on Friday following a report suggesting that the company is considering investing in Bitcoin BTC/USD along with other cryptocurrencies.

The Details: According to CNBC, citing sources familiar with the matter, the company is struggling to decide if the investment in cryptocurrencies makes sense. The stock surged as much as 20% in after-hours trading on Thursday after the news broke.

GameStop previously launched crypto wallets which let users manage their crypto and nonfungible tokens, but the company shut down the service in 2023 due to “regulatory uncertainty.”

To keep the business profitable despite a lack of growth, CEO Ryan Cohen has prioritized reducing expenses and optimizing operations. In a November 2 filing, the company reported having $4.6 billion in cash, which it has been using for investments and could use for a potential cryptocurrency investment.

In December 2023, GameStop revised its policies to give the CEO, two independent board members and necessary staff control over the company’s securities investments. Under the new policy, investments must adhere to specific guidelines or receive approval through a unanimous committee vote or a majority vote from the full board.

GameStop is not the first company to consider investing in cryptocurrencies. MicroStrategy, Inc. MSTR has bought billions of dollars worth of Bitcoin and is currently the largest corporate holder of the cryptocurrency.

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GME Price Action: At the time of writing, GameStop shares are trading 5.58% higher at $27.81, according to data from Benzinga Pro.

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