GameStop Corp surges on reports of imminent crypto and NFT ventures
The price of the so-called meme-stock surged in after hours trading as rumours of the NFT venture spread
GameStop Corp (NYSE:GME)‘s share price surged in out-of-hours dealing last night as speculation intensified it is entering the crypto and non-fungible token (NFT) world.
The US video games retailer is forming a separate division to form partnerships related to cryptocurrency assets alongside the creation of an NFT marketplace, the Wall Street Journal reported.
The share price soared 22% to reach US$173.02, but remains some way off the highs of US$247.55 seen in mid-November. The shares are nevertheless still 600% higher than 12 months ago.
GameStop’s crypto plan started months ago, according to a source quoted by The Wall Street Journal, which said the firm had retained and hired crypto advisers to its ranks.
The Journal added GameStop’s management team believes there’s an opportunity to enter crypto and NFT markets as more gamers turn to cryptocurrency to buy assets like NFTs and new gaming experiences.
The source also claimed GameStop had been in talks with decentralised finance company Loopring, but withdrew over logistical concerns relating to Loopring’s operations in China.
GameStop burst into the investment spotlight early last year as the company at the centre of the Reddit WallStreetbets phenomenon. Soon after the ‘meme stock’ moniker appeared to label such companies, which were driven sharply higher as large numbers of retail traders bought shares and interacted with the emerging online community.
It was one of the most bought shares among UK investors last year, according to data from several major retail investment platforms.
Read More: GameStop Corp surges on reports of imminent crypto and NFT ventures