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GameStop says it wants to be more like MicroStrategy and plans are boosting the stock Friday, up more than 5 percent. The company is considering investing in Bitcoin and other cryptos.
GameStop didn’t immediately respond to Barron’s request for comment.
Polymarket began offering a betting market on this happening with nearly a half of those gambling believing it will come to fruition.
Entering into the Bitcoin game might represent a more promising future for GameStop as sales of physical copies of games continue to fall.
Michael Pachter of Wedbush Securities, one of just two Wall Street analysts who covers the stock, said in an email to Barron’s, that GameStop “already trades at about the same premium to its net asset value as Strategy.
“So I am doubtful that its share price rises significantly if they convert all of their cash to Bitcoin or other cryptocurrencies,” he added. Pachter has a Sell rating on GameStop stock and a price target of $10, which is almost 65% below its current share price.
It was too early to determine how much betting has taken place on this market.
How This Market Will Resolve
This market will resolve to "Yes" if GameStop (GME) announces that it has acquired any amount of Bitcoin between February 12, 2025, and April 1, 2025, 11:59 PM ET. Otherwise, this market will resolve to "No".
The resolution source for this market will be official information from GameStop, however a consensus of credible reporting may also be used.
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