Quick Takeaways
• Customers may be able to use cryptocurrency to purchase trading cards from GameStop.
• Its $500M Bitcoin purchase was meant to fight inflation, not copy MicroStrategy.
• The company is open to using multiple cryptocurrencies, depending on demand.
GameStop’s Big Shift: Crypto Payments on the Table
GameStop is thinking about letting customers use crypto payments to buy collectibles and trading cards, according to CEO Ryan Cohen. If that seems like a significant shift, it is.
The company has been shifting away from hardware sales, which have become more expensive to manage thanks to inflation and global supply chain issues.
Instead, GameStop is leaning into its trading card and collectible business products that tend to have higher margins and dedicated fans.
In an interview with CNBC, Cohen stated, “There is a chance to purchase trading cards with cryptocurrency.”
“We’ll see how much demand is really there.”
In other words, GameStop isn’t committing just yet but they’re exploring the idea seriously.
Not Just Following MicroStrategy: Why GameStop Bought Bitcoin
GameStop purchased about 4,710 Bitcoin in May, which at the time was valued at more over $500 million.
And no it’s not trying to become the next MicroStrategy. Cohen was quick to point out that GameStop’s decision had more to do with managing inflation risk than making headlines.
“We’re not copying anyone,” he said. “We’ve got a strong balance sheet and we’ll invest the way I’d invest my own money.”
Basically, GameStop sees Bitcoin as a kind of financial safety net.
With over $9 billion in cash and securities, they can afford to take some calculated risks especially if there’s big upside potential and limited downside.
What Crypto Will GameStop Use?
So far, GameStop hasn’t said which cryptocurrency it might accept. However, Cohen made it clear they’re keeping an open mind.
“We will examine all cryptocurrencies,” he continued.
That could mean Bitcoin, Ethereum, or even stablecoins like USDC.
But, it also depends on how easy it is to integrate and how comfortable regulators are with it.
A cryptocurrency wallet and an NFT marketplace were actually introduced by GameStop in the past, but both were shut down because of regulatory uncertainties.
Even if they are enthusiastic about cryptocurrency, they are also conscious of its dangers.
Investing Wisely, Not Loudly
The Bitcoin purchase wasn’t the only financial move GameStop made this year. In June, they raised another $450 million through a private convertible note offering.
This is part of a larger plan to raise up to $2.25 billion some of which could go toward crypto-related efforts.
In short, GameStop isn’t throwing money at hype. They’re moving carefully, investing in areas that have growth potential, but still protecting their bottom line.
How Did the Market React?
Interestingly, GameStop’s stock didn’t do much after Cohen’s crypto tease. Shares dipped slightly to $23.22 and only went up 0.3% in after-hours trading.
Compare that to February, when rumors of crypto involvement sent the stock up 18% it seems like investors are waiting to see real action before getting too excited.
So, What’s Next for Crypto Payments at GameStop?
GameStop isn’t rushing into anything, but the idea of crypto payments is definitely on the table.
If customers want it, and the legal landscape becomes clearer, we could see Bitcoin or other cryptocurrencies at checkout in the near future.
The focus for now? Testing the waters and seeing if there’s real demand without betting the farm.