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GRAPEVINE, Texas (AP) — GameStop's seesawing stock price surged
7% late Tuesday after the video game retailer disclosed plans to
invest some of its cash in cryptocurrency.
Without providing any details, GameStop said its board of
directors had approved a revision in its investment policy to
enable the Grapevine, Texas, company to convert some of its U.S.
dollars into Bitcoin, which has become a hot commodity since
last November's election of President Donald Trump. His election
led to the departure of regulators who had cracked down on
alleged fraud in the cryptocurrency market. As of early
February, GameStop held nearly $4.8 billion in cash.
After GameStop signaled it would start betting on Bitcoin, the
company's famously volatile shares rose $1.83 to $27.83 in
extended trading. Even if the stock behaves similarly in
Wednesday's regular trading session, the price remains far below
its 52-week high of $64.83. That was reached last May shortly
after influential investor Keith Gill, popularly known as
"Roaring Kitty,' appeared online for the first time in three
years to declare his support for GameStop.
Gill's cheerleading revived memories of a “meme stock” craze he
helped ignite in early 2021, when GameStop's stock price soared
above $120. The company had suffered cumulative losses totaling
more than $1.3 billion during the previous three years while its
sales eroded. GameStop earned $131 million on sales of $3.8
billion during its more recent
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