GameStop Bets on Bitcoin for Long-Term Gains
GameStop has decided to invest in Bitcoin, viewing it as a profitable long-term asset. The companyâs board approved using corporate funds and future capital to buy crypto,especially Bitcoin.
This move didnât start well. GameStopâs shares fell by 22%, the biggest drop since June. However, the stock bounced back slightly on Monday. Despite this, the year-to-date gain is still negative at 28.64%, though itâs up 82% from last year.
Mateusz Kara, CEO of Ari10, sees this as a financial reinvention rather than a core business turnaround. âGameStop believes Bitcoin is a very profitable investment in the long run,â Kara explained.He cited Strategyâs success with Bitcoin as an exmaple.
The timing wasnât ideal, given Bitcoinâs recent price dip. But this offers GameStop a favorable entry point. Investors might need convincing, but the potential is there.
Investing in Bitcoin also has branding benefits. Itâs trendy now and can improve GameStopâs image, especially among younger investors. This coudl help the company evolve from a brick-and-mortar retailer to a more dynamic, crypto-aligned brand.
GameStopâs shares may look cheap now, but this could be due to âbuy the rumor, sell the factâ dynamics. Investors chased the initial speculation but fled once the debt-funded plan was official.
Donald Trumpâs economic policies, notably tariffs, add to market uncertainty. However, Kara believes U.S. policy could raise Bitcoinâs value, benefiting GameStopâs share price.
Whether GameStop becomes the next MicroStrategy is uncertain. Unlike Strategy, GameStop trades at a premium to itâs cash holdings. But with a refreshed narrative, retail loyalty, and a Bitcoin bull case, the original meme stock may still have potential.
