GameStop may be credited as the first meme stock, but the video game retailer’s CEO seems to be hinting that the company could soon embrace Bitcoin.
The company is set to report Q4 earnings when the market closes at 4 p.m. Eastern Time on Tuesday. Analysts expect the Texas-based firm to disclose an earnings per share mark of $0.08, based on two analyst ratings compiled by FactSet.
Last month, GameStop received a proposal from Strive Asset Management recommending the video game retailer become a “premier Bitcoin treasury company in the gaming sector” by converting its cash reserves into Bitcoin.
GameStop Chairman and CEO Ryan Cohen acknowledged Strive’s proposal on X, formerly known as Twitter. “Letter received,” he said, without elaborating further.
Several companies in the U.S. have embraced Bitcoin as a treasury reserve asset, but the practice was pioneered by Strategy, which has been buying Bitcoin since 2020 and now holds 506,137 BTC valued at $44.2 billion.
Before acknowledging Strive’s proposal last month, Cohen posed alongside Strategy co-founder and Executive Chairman Michael Saylor in a photo he posted to X.
Cohen, who founded the online pet supplies store Chewy, has stockpiled cash at the video game retailer since stepping into the role nearly a year and a half ago. He was first named the company’s executive chairman after Matt Furlong, who tried unsuccessfully to launch NFT collectibles, was terminated.
As of Nov. 2, GameStop held $4.6 billion in cash and cash equivalents, compared to $900 million a year prior, according to a Securities and Exchange Commission filing.
The company’s stock price jumped last month after people familiar with the matter told CNBC that the company was considering buying Bitcoin and other cryptocurrencies. At the time of writing, GME is trading for $25.10 per share after having lost 2% since the opening ball.
GameStop did not immediately respond to a request for comment from Decrypt.
In early 2021, GameStop became a flashpoint for retail investors. Legions of users on the Reddit forum r/WallStreetBets—including Keith Gill, also known as Roaring Kitty—partook in a coordinated effort to bet against Wall Street firms and trigger a short squeeze.
A short squeeze can occur when short sellers are forced to buy shares to cover their positions, driving the stock price up further. GameStop’s stock price peaked in 2021 around $95, after trading around $5 a month before, according to Nasdaq.
The company’s stock changed hands at $25.35 on Tuesday morning Eastern, up 90% from a year ago. Still, GameStop shares have swooned 17% from $30.66 at the start of this year.
Gill’s return to posting online stoked interest in GameStop last year, as the influencer dropped cryptic videos and screenshots of GameStop positions on Reddit. He has not posted to X since Jan. 22, when he shared a video of a sad, lonely looking dog.
Years ago, Saylor was linked to several firms adopting Bitcoin as a treasury reserve asset, including Tesla. The automaker owned by Elon Musk disclosed its first Bitcoin purchase in February 2021, months after Saylor publicly urged the firm to buy Bitcoin.
Edited by Stacy Elliott.
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