GameStop has never failed to surprise anyone. To this day, it’s crazy how they’ve been able to sustain a 100-dollar share price considering they almost went bankrupt a year ago. Of course, GameStop has made a lot of different business moves ever since the meme stock mania, which has benefitted shareholders, but the reaction to them is always massive. Nonetheless, GameStop decided to connect with the one modern element they were missing: cryptocurrencies.
Ever since he stepped into the chairman role, Ryan Cohen has been making ambitious moves with the intent of growing the business into something important to consumers today, not 10 years ago. No one wants to go down the same path Blockbuster did, right? This crypto move seems to be part of his arsenal, and his first action regarding the highly infectious space occurred on Thursday.
GameStop launched a new division with the goal of creating a marketplace to sell NFTs, possibly adding to the profit number. Being a video game retailer, they are looking to have video game goods like avatars, weapons, and game items in their NFT universe, which is something we touched on recently regarding the gaming industry. They also plan to partner with 2 cryptocurrency companies and invest millions of dollars into this space with the hope of becoming an industry leader. This defines the new leadership of GameStop as the company is quickly picking up on industry trends, which is something they haven’t done in the last decade. More importantly, this continues the growing trend of tech companies entering the cryptocurrency space, which could have major impacts on the fundamentals of stocks we own. NFTs won’t do it all for GameStop as it’s still a new, unproven concept, but it provides hope to investors and it could provide some financial benefits to the company, strengthening their fundamentals. Was this a good move by GameStop?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.