GameStop Buys Bitcoin

The video game seller GameStop, which has seen a long period of stagnation in recent years, made an unanimous board decision to purchase bitcoin.

A GameStop store in an English-speaking country.

GameStop, especially in the post-pandemic world, has appeared to have stagnated as a result of poorer earnings reports, as well as the general trend in the gaming industry downward. More individuals, either because of affordability, cheaper streaming services, or other factors have bought less of the most popular consoles: PS5, Xbox, and Nintendo Switch. Declining sales of these consoles have brought down GameStop's earnings, and so the company began to bleed over time. However, its stock has been very volatile in both directions; Roaring Kitty, who has used heavy manipulation to get the stock moving in his favor, allowed for the stock to surge by double digits and subsequently fall by double digits in the matter of a few days.

GameStop has realized of its very poor situation. It cannot completely reverse its deteriorating state, however, because of the virtually irreversible trend in the gaming industry downward. Indeed, not a single company alone could make a significant difference in the performance of the entire gaming world. However, the company has attempted a number of strategies to keep the company afloat. It has laid off countless workers, moving to digital gaming or subscriptions, and even encouraging investors to invest in its very volatile stock. The stock, being very volatile, could prove to be massively profitable for investors, so their strategy has, at least partially, been very effective.

However, the company made an important decision today which could bring the company back on track: cryptocurrency. According to a massive board of directors meeting from the company very recently, it will be purchasing millions of dollars worth of Bitcoin in the form of a crypto reserve. This way, it could adapt to the growingly crypto-based economy. The company hopes that this new change could give it the financial leverage in order to end the bleeding, if you will.

In the after hours trading session on Tuesday, GameStop stock rose by over 7%, and the value of Bitcoin has strengthened.