GameStop Stock Surges After Bitcoin Investment

GameStop Corp. has announced its decision to invest in Bitcoin, aligning with a trend seen in companies like MicroStrategy, which has significantly invested in the digital currency as a treasury reserve asset. This move was confirmed following increased speculation and a proposal from Strive Asset Management, as well as GameStop CEO Ryan Cohen's interactions with Bitcoin proponent Michael Saylor. GameStop's stock surged by over 6% in post-market trading after the announcement, despite reporting a 28.5% drop in revenue for the fourth quarter. The company, which became renowned as a 'meme stock' in 2021, is looking to leverage its substantial cash reserves, reported to be $4.6 billion as of November 2023, to diversify into cryptocurrency. Analysts had previously anticipated the retailer's interest in this digital asset, given the recent buzz and its strategic financial position.