GRAPEVINE, Texas — GameStop’s stock price took an upward turn late Tuesday with a 7% surge after the video game retailer revealed plans to channel part of its cash reserves into cryptocurrency investments. The company, based in Grapevine, Texas, announced that its board of directors had approved changes to its investment policy, allowing the conversion of some U.S. dollars into Bitcoin. This decision aligns with Bitcoin’s heightened popularity, especially following last November’s election of President Donald Trump, which led to a reshuffling of financial regulators who had been vigilant against alleged fraudulent activities in the cryptocurrency domain.
GameStop, known for its erratic stock performance, saw its shares increase by $1.83 to $27.83 in after-hours trading. However, even if this upward trend continues into Wednesday’s regular trading session, the stock remains significantly below its peak of $64.83 over the last year. This peak was achieved last May following an online appearance by prominent investor Keith Gill, famously known as “Roaring Kitty,” who had not publicly shown support for GameStop for three years prior.
Gill’s endorsement revitalized the fervor seen during the “meme stock” phenomenon he had previously stoked in early 2021, when GameStop’s stock price skyrocketed above $120. Nonetheless, before this resurgence, GameStop had reported cumulative losses exceeding $1.3 billion over the preceding three years as its sales dwindled. Most recently, the company reported earnings of $131 million on sales amounting to $3.8 billion for its last fiscal year.