- GameStop updated its Investment policy to include Bitcoin as a treasury reserve, with no cap on accumulation and the ability to sell as needed.
- The board unanimously approved this change on March 18, as disclosed in the company’s 2024 SEC annual report.
On Tuesday, popular American video game retailer GameStop updated its Investment Policy, adding “certain crypto-currencies, including Bitcoin” as permissible investment instruments.
The company’s board approved the change unanimously on March 18, disclosed in GameStop’s 2024 annual report filed with the SEC after the market closed. The filing noted that the company has not set a maximum limit on the amount of Bitcoin it may accumulate and reserves the right to sell any Bitcoin acquired.
Related: Bitcoin Bullish: $110K Peak More Likely Than $76K Dip, Says Hayes
First Speculation, Then Reality
CEO Ryan Cohen first sparked speculation early February by posting a photo of himself with Michael Saylor, Executive Chairman of Strategy (MSTR), at Donald Trump’s Mar-a-Lago. Shortly thereafter, Strive Asset Management CEO Matt Cole sent a letter urging GameStop to deploy at least part of its nearly US$5B (AU$7.93B) cash reserve to purchase Bitcoin.
We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier Bitcoin treasury company in the gaming sector.
Strive Asset Management CEO Matt ColeCohen’s subsequent tweet, “Letter received”, only fueled further speculation. In after-hours trading, GME shares climbed to US$25.40 (AU$40.27), a change of 8.7% in the daily timeframe.
Data from CoinMarketCap shows Bitcoin is holding its ground at US$87,492 (AU$138,744), a 5.7% change in the last seven days. In the last couple of weeks, the asset had experienced significant turmoil. As the market struggled with volatility, CoinGlass data registered nearly US$1B (AU$1.57B) in liquidations.
Related: XRP, SOL, BTC Rally: Is the Bottom in For the Crypto Market?
Credit: Source link
