GameStop CEO Hints at Embracing Bitcoin as Company Reports Q4 Earnings
GameStop, known as the first meme stock, may soon embrace Bitcoin, according to hints from the company’s CEO. The Texas-based video game retailer is set to report its Q4 earnings after the market closes on Tuesday. Analysts predict an earnings per share of $0.08 based on two ratings from FactSet.
Last month, GameStop received a proposal from Strive Asset Management suggesting that the company convert its cash reserves into Bitcoin and become a leading Bitcoin treasury company in the gaming sector. GameStop’s Chairman and CEO, Ryan Cohen, acknowledged the proposal on X (formerly known as Twitter) by simply stating, “Letter received.”
Several U.S. companies have already adopted Bitcoin as a treasury reserve asset, with Strategy leading the way. Strategy has been purchasing Bitcoin since 2020 and currently holds 506,137 BTC valued at $44.2 billion. Cohen previously posed in a photo with Strategy’s co-founder and Executive Chairman, Michael Saylor.
Cohen, who also founded Chewy, an online pet supplies store, has been accumulating cash at GameStop since taking on the role a year and a half ago. As of November 2, the company held $4.6 billion in cash and cash equivalents, compared to $900 million the previous year, according to a filing with the Securities and Exchange Commission.
GameStop’s stock price surged last month following reports that the company was considering buying Bitcoin and other cryptocurrencies. As of now, GME is trading at $25.10 per share, down 2% from the market opening.
Decrypt reached out to GameStop for comment but did not receive an immediate response.
In early 2021, GameStop became a focal point for retail investors, particularly on the Reddit forum r/WallStreetBets. Keith Gill, also known as Roaring Kitty, and others coordinated efforts to bet against Wall Street firms and trigger a short squeeze. This led to GameStop’s stock price peaking at around $95, up from $5 a month prior.
Keith Gill’s online presence sparked interest in GameStop, as he shared videos and screenshots of his GameStop positions on Reddit. However, he has not posted on X since January 22.
Over the years, Saylor has been associated with several companies that adopted Bitcoin as a treasury reserve asset, including Tesla. The automaker, led by Elon Musk, announced its first Bitcoin purchase in February 2021 after Saylor publicly urged the company to invest in Bitcoin.
Edited by Stacy Elliott.