GameStop stock surges as it considers investing in Bitcoin and other cryptocurrencies

- GameStop stock sees a 7% gain after an 18% surge in after-hours trading - Bitcoin investment review news is a major cause [Unblock Media] On February 13, GameStop's stock surged 18% during after-hours trading before closing up 7% after adjustments. According to a report by CNBC, the primary reason cited for the spike was news that the company is reviewing a new financial strategy involving alternative asset classes, particularly cryptocurrency investments. Although the possibility of Bitcoin investment was mentioned, nothing has been decided at this point. According to internal sources, GameStop is carefully considering whether to adopt digital assets such as Bitcoin and is closely analyzing their compatibility with its actual business model. While news of cryptocurrency investments spread, the stock price surged during trading but was later adjusted from $31.30 to $28.36 due to profit-taking and caution, maintaining a 7% increase amid market attention. Meanwhile, the Solana-based meme coin GameStop (GMEM) also surged 45%, rising to $0.0027 before falling to $0.0025. However, GMEM has no direct association with GameStop. The price fluctuation is analyzed to stem from speculative market sentiment influenced by news related to GameStop and the brand's recognition. This scenario mirrors the rapid rises and corrections seen with other meme coins like Dogecoin and Shiba Inu. As instances of Solana network-created meme coins experiencing quick surges followed by rapid declines repeat, it is pointed out that GMEM may follow a similar trajectory. With the possibility of GameStop adding cryptocurrencies to its assets being discussed, recent examples of Japanese companies investing in Bitcoin have also gained attention. On February 10, Japanese mobile game company Gumi acquired Bitcoin worth 1 billion yen (about $6.6 million). Gumi aims to expand into Web3 businesses, including blockchain game development, and regards Bitcoin as a long-term value storage medium. Additionally, on February 12, Metaplanet raised 4 billion yen (about $26.1 million) and holds 1,762 BTC (market value about $170 million). Metaplanet added Bitcoin as part of its asset diversification strategy, leading the trend of digital asset adoption among companies in Japan. These examples suggest GameStop might pursue a similar direction in the future. However, due to GameStop's mixed results in the cryptocurrency market historically, some caution is advised. The company launched a cryptocurrency wallet for users in 2022 but ended the service in November 2023 due to regulatory uncertainties and profitability issues. The NFT market that launched in 2022 will also close in January 2024. Given its history of withdrawing from cryptocurrency-related businesses, there is skepticism about whether the current Bitcoin investment discussion will result in actual implementation. GameStop is renowned as a key player in the 'meme stock' craze driven by retail investors in 2021. During that time, small investors collectively bought shares to fend off shorting attacks by hedge funds, causing the stock price to soar over 1,000% in a month. Considering this history, the recent news about potential Bitcoin investment might have strongly resonated with meme stock-oriented investors. However, it is uncertain whether the current stock surge will lead to sustained growth as in the past, given that the stock's movement was driven by market expectations without a definitive investment decision. Depending on the company's official stance in future announcements, the stock could see significant adjustments again. Currently, GameStop management is exploring new growth strategies beyond the traditional retail game sales model. While investments in digital assets such as Bitcoin might be part of this transformation strategy, a more cautious approach seems necessary considering past experiences. The focus remains on what decisions GameStop will make amidst market expectations and reality, and how those decisions will impact its stock price.