American financier Anthony Scaracummi has suggested that video game retailer GameStop should buy Bitcoin, the largest cryptocurrency by market capitalization.
Earlier today, GameStop's shares nose-dived roughly 30% after revealing underwhelming financial results and announcing its plan to issue more shares.
This was a sharp turnaround after the shares of GameStop soared by almost 50% due to a livestream announcement by a YouTube account that is believed to be related to prominent American financial analyst and investor Keith Gill (colloquially known as "Roaring Kitty").
Gill was supposed to celebrate becoming a paper billionaire in his livestream this Friday, but GameStop's most recent underperformance put a stop to it.
The company also stressed the recent massive rally was not based on fundamentals, taking a not-so-veiled shot at "Roaring Kitty."
Roughly half of Polymakers users were betting that Gill's position in GameStop would hit the $1 billion mark.
Gill, who came to prominence after spearheading the GameStop bonanza back in 2011, reappeared on social media last month with cryptic posts that his followers persistently tried to decipher. As reported by U.Today, there is some speculation that his recent antics might attract scrutiny from the U.S. Securities and Exchange Commission due to market manipulation concerns.
GameStop and crypto
After becoming the darling of retail traders in early 2021, GameStop seems like an obvious match for speculative digital assets.
In May 2022, the company launched self-custodial wallets for cryptocurrencies and non-fungible tokens (NFTs). However, it later ditched them in August 2023 due to the lack of regulatory clarity.
GameStop also rolled out its own NFT marketplace in June 2022, but it was shut down as well earlier this year.
Given that GameStop has abandoned its previous crypto efforts, it is unlikely to adopt Bitcoin as its reserve asset anytime soon.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team