GameStop has taken a significant step towards diversifying its investment portfolio under the leadership of CEO Ryan Cohen. The company recently announced that Cohen, alongside two independent board members and key staff, will manage its securities investments. This strategic move has already led to a surge in GameStop's stock, which climbed as much as 20% in extended trading. The announcement reflects GameStop's exploration of alternative asset classes, particularly cryptocurrencies like bitcoin.
Under Ryan Cohen's stewardship, GameStop has been diligently working to optimize operations and cut costs. Cohen, who joined the GameStop board in 2021 after purchasing shares a year prior, aims to ensure the company's profitability despite stagnant growth. As part of this strategy, GameStop is now examining whether investing in cryptocurrencies aligns with its long-term business objectives. This decision follows the launch and subsequent shutdown of GameStop's crypto wallets, which were discontinued in 2023 due to "regulatory uncertainty."
The company's interest in cryptocurrencies is backed by a substantial cash reserve of $4.6 billion as of November 2, which has been allocated for various investments. In December 2023, GameStop's board approved a new "investment policy," further cementing its commitment to exploring new financial avenues. A recent photo posted by Ryan Cohen on social media platform X, featuring himself with Michael Saylor, co-founder and chairman of MicroStrategy—a company renowned for its significant bitcoin holdings—has fueled speculation about GameStop potentially adding bitcoin to its balance sheet.
GameStop's consideration of bitcoin investments mirrors the path taken by MicroStrategy, which has acquired billions of dollars worth of bitcoin in recent years. This move could position GameStop as a forward-thinking company embracing digital assets amidst a rapidly evolving financial landscape.