GameStop shares jumped nearly 17% in pre-market trading hours on Wednesday after the company announced a significant change in its financial strategy. The video game retailer’s board unanimously approved adding Bitcoin to its treasury reserves, a move that quickly grabbed investors’ attention.
GameStop’s pre-market price, which is at the resistance of $28.97, is a make-or-break situation, as it has made a resistance for a long time. GME’s stock price is currently at $25.40, so as the market opens, either it will cover the gap and surge or it will just collapse.
GameStop has a cash reserve of over $4.75 billion but hasn’t said how much of it will go into Bitcoin. That said, this decision is a bold one, as the company looks to solidify its financial position and stay relevant in an increasingly digital world.
Alongside this announcement, GameStop released its fourth-quarter earnings report. The company posted a revenue of $1.283 billion, which fell short of analyst expectations of $1.48 billion. However, its adjusted earnings of 30 cents per share far exceeded the predicted 8 cents, giving investors something to cheer about.
Ryan Cohen, as CEO, has been a driving force behind GameStop’s evolving strategy, and his enthusiasm for digital assets has people buzzing about where the company might be headed. With this news breaking, GameStop’s stock jumped 13.4% in pre-market trading, showing that investors are pretty confident about what’s coming next.
Also Read: GameStop Explores Crypto Payments for Cards and Collectibles
