GameStop is considering investing in Bitcoin, and the news already started impacting its stock price. CEO Ryan Cohen recently posted a photo with MicroStrategy’s Michael Saylor, and his firm may serve as a blueprint.
GameStop previously tried to enter the Web3 market with its NFT marketplace, but this proved unsuccessful. Bitcoin is completely unrelated to its core business model and may dramatically change the company, but its revenues would keep it afloat.
Will GameStop Follow MicroStrategy’s Footsteps?
GameStop, ostensibly a gaming and electronics retailer, has changed a lot in the last few years. After steadily declining revenues, a Reddit-driven stock squeeze in 2021 brought about a legendary stock pump. This event rejuvenated company leadership, prompting new Web3-oriented business solutions like an NFT marketplace.
However, GameStop’s momentum couldn’t last forever; the firm fired CEO Matthew Furlong in 2023 and shuttered its NFT marketplace the following January.
Today, however, GameStop is preparing to take a truly radical step: investing in Bitcoin. According to published rumors, the firm may invest in it and other cryptoassets soon. The news quickly had a notable impact on its stock price.
The price of Bitcoin has been extremely bullish in recent months, but that doesn’t fully explain GameStop’s decision. Despite the recent liquidations triggered by Trump’s geopolitical decisions, Bitcoin is starting to stabilize.
Given BTC is still below $100,000 and analysts predict much higher prices by the end of the year, it would be an optimal time for GameStop to add Bitcoin to its portfolio. The decision seems to be somewhat inspired by MicroStrategy’s Michael Saylor.
Before buying Bitcoin, MicroStrategy was in a very similar position to GameStop. Saylor saw revenues from its traditional business model drying up and made a dramatic gamble on BTC.
This bet has paid off extraordinarily well, and Saylor recently rebranded the company to prominently feature the Bitcoin logo.
“GameStop, a company with no viable business plan, has thrown another Hail Mary by announcing that it might use its cash to buy Bitcoin. The irony is that Bitcoin is even more overpriced than GME. No matter; speculators are buying the stock anyway, hoping it becomes another MSTR,” wrote anti-crypto advocate Peter Schiff.
In other words, Saylor’s Bitcoin rebrand could serve as a blueprint for GameStop. The company tried to adapt to meet Web3 market opportunities when it entered the NFT market, but this wasn’t enough. Many of its NFTs were gaming-themed, and this proved a niche market. Bitcoin, however, has nothing to do with its old business model.
Committing to a Bitcoin-first strategy could completely change GameStop’s revenue model. MicroStrategy was totally transformed by its pivot to BTC. Even Tesla, one of the world’s largest tech firms, has noticeably changed due to its crypto purchases.
However, no further updates regarding any accumulation plans have been revealed yet.
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