GameStop (NYSE: GME) stock is up 2.2% in premarket as of time of publication, riding the momentum seeing GME shares climb 25.57% in a week.
Notably, GameStop has taken another bold step into the cryptocurrency space, announcing the acquisition of no less than 4710 Bitcoin (BTC) for $513 million.
While the exact financial details are not available, the investment seems to highlight GameStop’s confidence in digital currencies. Recall that the games retailer also announced a $1.3 billion debt offering to fund its BTC acquisition just two months ago.
The company appears to be doing better financially, so it can probably afford such exuberance. After all, it boasts a market cap of $15.66 billion, and its expected earnings per share for the current quarter are about +125% year-over-year.
GameStop is diversifying
More generally, the retailer has been diversifying a lot recently, especially in e-commerce. CEO Ryan Cohen spent a chunky $1 billion on Alibaba (NYSE: BABA) shares alone, for example.
Things are not all rainbows and sunshine, however. Namely, Cohen is facing legal challenges over alleged “short-swing” trading profits totaling $47.2 million related to Bed Bath & Beyond (NYSE: BBBY) stock trades.
Whatever the case, the new BTC purchase and expansion moves reflect GameStop’s approach to integrating gaming, e-commerce, and digital finance, and as such, they are not to be ignored. That goes especially if you’re investing long-term.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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