In recent developments, there has been speculation that video game retail giant GameStop might purchase Bitcoin, the largest cryptocurrency by market capitalization. Earlier today, GameStop shares plummeted nearly 30% following disappointing financial results and the announcement of its plan to issue more shares.
Stock Volatility and Keith Gill’s Influence
This sharp decline came after GameStop’s stock surged almost 50% due to a live broadcast on a YouTube account believed to be associated with renowned financial analyst and investor Keith Gill, popularly known as “Roaring Kitty.” Gill was expected to celebrate becoming a paper billionaire during his live stream on Friday, but GameStop’s recent poor performance put a damper on those celebrations.
The company emphasized that the recent massive rally was not based on fundamentals, subtly referencing “Roaring Kitty.” Nearly half of Polymakers users bet that Gill’s position in GameStop would reach a billion dollars. Gill, who gained prominence after driving GameStop’s fortunes in 2011, resurfaced on social media last month with cryptic posts that his followers have been trying to decode.
Regulatory Concerns and Market Speculation
There is speculation that Gill’s recent antics might attract scrutiny from the U.S. Securities and Exchange Commission (SEC) due to concerns about market manipulation.
GameStop and Cryptocurrency Ventures
Having become a favorite among retail traders in early 2021, GameStop seemed like a natural fit for speculative digital assets. In May 2022, the company launched self-custodial wallets for cryptocurrencies and non-fungible tokens (NFTs). However, it later abandoned this initiative in August 2023 due to a lack of regulatory clarity.
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GameStop also launched its NFT marketplace in June 2022, which was shut down earlier this year. Given GameStop’s previous retreats from the cryptocurrency space, it seems unlikely that the company will adopt Bitcoin as a reserve asset anytime soon.
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