GameStop stock surges by 30% following a report on future crypto plans
GameStop (GME) shares has jumped by over 30 per cent in after-market trading following a Wall Street Journal report that revealed the company’s plans to launch a NFT marketplace and establish more cryptocurrency partnerships.
The company is in the midst of a corporate turnaround, moving away from physical video game retailers and towards e-commerce marketplaces. The WJS revealed the company is in discussions with investors to establish a NFT creator fund worth upward of $100 million.
GameStop has hired over 20 people to run the new unit and to establish the NFT market-hub specialising in video collectables such as avatars, outfits and weapons, according to the WSJ report.
Although no formal announcement has been made, GameStop has confirmed these plans through the WSJ report. In October, GameStop suggested its plans to create an Ethereum-based Web3 arm of the company through a job posting that searched for a “Head of Web3 gaming”.
The famed meme stock made its headline debut last January, as retail investors hyped GME on social media platform Reddit and investment site Robinhood, to demolish predictions made by established hedge funds that the stock would fall. What ensued was significant profits made by retail investors and large losses to hedge fund conglomerates.