A general picture of the Gamestop logo on one of the shops in the city center of Cologne, Germany.
Ying Tang | Nurphoto | Getty images
Videogamet shop Gamestop Tuesday announced that the board has unanimously approved a plan to buy Bitcoin with its business cash, which shows a move made famous by Micro strategy.
The MEME share rose by more than 6% in extended trade after the news on Tuesday. The announcement confirmed the CNBC report in February of Gamestop's intention to add Bitcoin and other cryptocurrencies to his balance.
The retailer of VideoGames said that some of his cash or future debt and share liters can be invested in Bitcoin and by the US dollar-through stablecoins. From 1 February, Gamestop had almost $ 4.8 billion cash. The company also said that it did not set a ceiling on the amount of Bitcoin that it can buy.
Gamestop will follow in the footsteps of software company MicroSstratey, now known as Strategy, which has bought billions of dollars from Bitcoin in recent years to become the largest company holder of the flagship cryptocurrency. That decision led to a fast, Alebit volatile, rise for the shares of the strategy.
Gamestop's trip to cryptocurrencies marks the last effort of CEO Ryan Cohen to breathe new life into the wrestling physical activities. Under the leadership of Cohen, Gamestop has focused on reducing costs and streamlining activities to ensure that the company is profitable.
The company said that the move could expose it to the volatility in connection with cryptocurrency prices.
“Bitcoin, for example, is a very volatile active and has experienced considerable price fluctuations over time. Our Bitcoin strategy has not been tested and cannot be successful,” said Gamestop in a Securities and Exchange Commission.
Bitcoin, the world's largest crypto-currency, has driven a roller coaster since President Donald Trump re-election won. After photographing and piercing the milestone of $ 100,000, Bitcoin has fallen around 18% from his record high to a recent price of around $ 88,000.
In combination with the announcement of the cryptocurrency, investors also cheer an increase in the results of Gamestop on the fourth quarter. The company reported the net result of $ 131.3 million, more than double the $ 63.1 million that earned in the same quarter last year.
