Key Takeaways
- GameStop is considering accepting bitcoin for trading card purchases as part of a strategic pivot.
- CEO Ryan Cohen describes GameStop's $500 million bitcoin buy as a hedge against inflation and global money printing.
- GameStop's previous NFT and wallet ventures were closed due to regulatory uncertainty.
GameStop CEO Ryan Cohen has signaled the company is exploring bitcoin payments for trading card purchases, while clarifying the firm’s strategy for holding bitcoin as a treasury asset.
Shift toward cards
Cohen told CNBC’s Squawk Box that GameStop is reducing its reliance on hardware sales due to rising costs and is focusing more on trading cards and collectibles.
He stated there is potential to allow customers to purchase trading cards using bitcoin, though the company has not yet committed to a specific digital asset for payments.
“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.”
Bitcoin as an inflation hedge
On May 28, GameStop acquired 4,710 BTC, a purchase valued at over $500 million at the time.
Cohen emphasized that the move was motivated by concerns over inflation and global monetary expansion, stating:
“The utility of crypto beyond investing is a hedge against inflation. I think so far that’s been the biggest demand for crypto, and so, the ability to actually use crypto within transactions is something that is an opportunity and it’s something that we’re looking at.”
He added that GameStop’s approach is distinct from MicroStrategy, explaining the company will deploy its over $9 billion in cash and marketable securities “responsibly.”
Previous digital asset ventures
GameStop previously launched a non-fungible token (NFT) marketplace and a digital asset wallet, but shuttered both in 2023 and 2024 over regulatory uncertainty.
Stock market reaction
Despite speculation around digital asset initiatives, GameStop shares saw little reaction to the payments announcement and closed down over 2% on Tuesday, trading at $23.22.
The stock had surged 30% in the month prior to the company’s bitcoin purchase, but dropped 22% in June following an increase in its planned private convertible note offering.
