GameStop To Invest Corporate Cash In Bitcoin, Following In Footsteps of MicroStrategy

GameStop announced it will invest part of its corporate cash in bitcoin and stablecoins, following MicroStrategy's lead. The meme stock jumped more than 6% in extended trading Tuesday following the news. CNBC reports: The video game retailer said a portion of its cash or future debt and equity issuances may be invested in bitcoin and U.S. dollar-denominated stablecoins. As of Feb. 1, GameStop held nearly $4.8 billion in cash. The firm also said it has not set a ceiling on the amount of bitcoin it may purchase. The company said the move could expose it to volatility associated with cryptocurrency prices.

'Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful,' GameStop said in a U.S. Securities and Exchange Commission filing.

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