A general view of the GameStop logo in one of the shops in the city centre of Cologne, Germany.
ying tang | nuphoto | Getty Images
Video game retailer GameStop announced Tuesday that its board had unanimously approved plans to buy Bitcoin with corporate cash.
Meme stocks jumped over 6% in expanded trading following the news. The announcement confirmed CNBC’s report on Gamestop’s intention to add Bitcoin and other cryptocurrencies to its balance sheet in February.
GameStop has followed in the footsteps of software company MicroStrategy, now known as a strategy, and has recently purchased billions of dollars worth of Bitcoin and become Bitcoin’s largest corporate holder. This move has prompted a rapid, but volatile rise due to the inventory of strategies.
GameStop’s foray into cryptocurrency shows the latest efforts from CEO Ryan Cohen, bringing back the struggling brick and mortar stores. Under Cohen’s leadership, GameStop focuses on cutting costs and streamlining sales, ensuring that the business will still make money even if it is not growing.
Investors also cheered on Gamestop’s increased fourth quarter results. The company reported net profit of $131.3 million, a surge from a figure of $63.1 million from the same period last year.
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