GameStop, the famous video game retailer, is making headlines again—this time for jumping into the world of Bitcoin. Shares of the company price jumped nearly 17% in pre-market trading on Wednesday after the company announced a big change to its investment strategy.
The board of the US retail firm GameStop has decided to add Bitcoin to their treasury reserves, making the company a holder of Bitcoin among their assets. But it hasn’t disclosed how much Bitcoin it intends to purchase. This provokes investors excited at the belief that this move could help GameStop stay relevant in the digital age.
Before the market opened, GameStop stock was worth $25.40, but investors are keen to see whether it has what it takes to bust above the $28.97 resistance level. The stock appears to continue to rise, and if so, it could be big gains for shareholders. However, if it does not manage to keep this level up, the price is likely to drop.
GameStop also announced its fourth quarter earnings along with this announcement. The final result is revenue of $1.283 billion, which is below the estimate. But the earnings per share were 30 cents, considerably above the anticipated 8 cents. It made the stock more attractive for the investors.
GameStop’s CEO Ryan Cohen has been pushing GameStop to go digital for a while now and it’s finally happening. GameStop joins other companies placing bets on the future of cryptocurrency by placing Bitcoin in its reserves. Investors are sitting at the edge of their seats to see what’s next.
Also read: Trump Media & Crypto.com Join Forces to Launch Truth.Fi ETFs in Major Finance Move
