GameStop dives into Bitcoin, but investors aren’t buying it…yet

GameStop announced plans last week to buy Bitcoin because it is a “very profitable investment,” according to Ari10 CEO.

GameStop’s board of directors unanimously approved last week to use both corporate cash and future capital raises to purchase crypto assets, notably Bitcoin Bitcoin
btc
0.18%
Bitcoin.

The short-term result? A 22% plunge in GameStop’s share price, its worst day since June. Not off to a good start. Cue the “You Died” screen.

A slight bounce on Monday now brings its year-to-date gain to negative 28.64%, although it is still up 82% from a year ago. But beneath the market volatility lies a longer-term strategy that could position GameStop for a turnaround.

According to commentary sent to crypto news from Mateusz Kara, CEO of Ari10, the company’s Bitcoin move should be seen not as a potential turnaround in its core business, rather a calculated bet on a financial reinvention.