GameStop Eyes Crypto Payments After $500M Bitcoin Bet

TL;DR

• GameStop explores crypto payments for trading cards, focusing on customer demand and blockchain utility.
• CEO Cohen says Bitcoin buy was a hedge against inflation, not a copy of Strategy.
• GameStop’s crypto push follows past NFT, wallet attempts; stock remains flat after new comments.

Company Considers Crypto for Collectibles

GameStop is looking at crypto as a possible payment method for trading cards and collectibles. CEO Ryan Cohen said the retailer is open to the idea, depending on customer demand. He told CNBC’s Squawk Box that the company wants to reduce its dependence on hardware and focus more on collectibles.

“There’s an opportunity to buy trading cards and to do so using cryptocurrency. So, we’ll see how much there is on the actual demand side for that kind of product,” Cohen said. 

When asked which coins might be accepted, he responded, 

“We’re going to look at all cryptocurrencies.”

Bitcoin Seen as Protection, Not a Copy of Others

GameStop bought 4,710 Bitcoin in late May, spending over $500 million. Cohen said the decision was about protecting value during a time of rising inflation and currency concerns. 

“The utility of crypto beyond investing is a hedge against inflation,” he said.

He also pushed back against the idea that GameStop is following the same path as Strategy. “We have our own unique strategy,” he said. Cohen pointed out that GameStop holds more than $9 billion in cash and marketable securities, and will be careful with how that money is used.

This is not GameStop’s first step into crypto. In 2022, it launched both a crypto wallet and an NFT marketplace. Both were later closed due to unclear rules in the U.S. market. The wallet shut down in November, and the NFT platform closed in January.

Despite those setbacks, the company is still watching the space closely. Cohen’s recent comments suggest a more careful and measured approach going forward.

Share Price Remains Flat After Announcement

The stock didn’t move much after Cohen’s comments. It dropped by 2% during the day and rose only slightly after the market closed. GameStop shares are currently trading at $23.20. In May, GameStop’s stock had jumped by 30% ahead of the Bitcoin buy but fell again in June after a new fundraising plan was announced.

Source: Google Finance

Meanwhile, the company raised $450 million as part of a planned $2.25 billion private offering. Some of those funds could be used for future digital asset investments, depending on market and legal developments.