GameStop Launches Cryptocurrency and NFT Focused Division; stocks soar 19%

The famous video game store chain Gamestop returned to the spotlight in 2022. According to the Wall Street Journal (WSJ), the company will launch a new division dedicated to cryptocurrencies and non-fungible tokens (NFT).

Among the novelties, GameStop plans to create a marketplace for NFT trading. With this, the company will allow customers to purchase items such as clothing and weapons for use in various games. More than 20 people to run this unit.

With the change, the company intends to carry out a turnaround, that is, a change in the business model. GameStop’s core will still be the games market, but the store business will give way to the digital market.

Several game developers and publishers were contacted by the company to list their NFT in the new marketplace. The platform will be launched in 2022, without a set date.

In early September, there were rumors that GameStop was working on an Ethereum-based NFT platform. Although the company has not revealed which blockchain it will use, some of these rumors have now been confirmed.

Cryptocurrency Partnerships

In addition to NFT, Gamestop is also looking for partnerships linked to cryptocurrencies. In this sense, about 12 smaller companies are in the company’s sights. According to the WSJ, GameStop also plans to invest “tens of millions of dollars” in them.

The Texas-based company has been stepping up efforts to turn its business around after years of losses. She was at the epicenter of the “Stock meme” case, when Reddit users sent GameStop’s stock skyrocketing. As a result, the company, which was previously on the brink of bankruptcy, had one of the best performers of 2021.

The move of 2021, when the company saw its shares rise exponentially, GameStop saw an opportunity to enter other markets.

“We believe our long-term emphasis is positioning us to build what will ultimately become a much larger business,” said Matt Furlong, CEO of the company.

With the information leak, the market reacted very positively. GameStop (GME) shares rose more than 26% during Thursday (6). At the end of the trading session, the shares closed up 19.02%, quoted at US$ 131. 

GameStop shares have been on a downward trend since late November, when they peaked around $250. In January, shares hit an all-time high of $350 as a result of the bullish rally earlier in the year.