GameStop, a retail store for games in the United States, has announced that the company’s board has unanimously passed a resolution allowing the company to use its cash reserves to buy Bitcoin as a corporate treasury reserve.
The company stated that they have plans to utilize a portion of their existing funds, including issuing debt or equity in the future to invest in Bitcoin and Stablecoin pegged to the dollar. GameStop’s latest financial report indicates that the company has around $4.8 billion in cash and equivalents. However, the company has not specified the maximum limit for purchasing Bitcoin.
GameStop’s approach may be likened to that of software development company MicroStrategy, now known as Strategy, which has been continuously buying Bitcoin and has become the company with the highest Bitcoin holdings in the world. This has positively impacted the company’s stock price, correlating with the increase in Bitcoin prices over the past few years.
Source: CNBC
TLDR: GameStop is considering using its cash reserves to invest in Bitcoin and Stablecoin, following a strategy similar to MicroStrategy. Their move could potentially impact the company’s stock price in line with Bitcoin’s performance.
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