After GameStop stock more than doubled in the past two days, CNBC’s Jim Cramer suggested the company change its business model to be more inclusive of cryptocurrencies.
“GameStop branches should become cryptocurrency palaces”
Speaking today on CNBC’s Squawk Box, Mad Money host suggested that GameStop has a plan to “justify the stock price.” At the time this news was published, the price of GME was $ 131.17. The point reached corresponds to an increase of more than 175% in the last 24 hours after weeks of horizontal movement. In addition to following the example of Tesla, which bought $ 1.5 billion of Bitcoin (BTC), Cramer cited Square and PayPal for GameStop.
“If GameStop turns itself into a 5,000 store crypto entry, they can make it an international gaming place where you earn Bitcoin, and I think they can justify the stock price.”
The Mad Money server suggested that all GameStop branches, which were 3,447 as of January, could become “crypto information palaces” where the company would allow players to buy and sell cryptocurrencies and offer them as game rewards. He added that Ryan Cohen, CEO of Chewy, the biggest investor of GameStop, could persuade the board to buy BTC worth $ 1 to $ 2 billion.
Ryan Cohen tells the board to sell 10 million shares of Gamestop at $200 and buys Bitcoin and says Gamestop is now a Bitcoin store that also sells games. Bingo! There's the plan. I bet the cfo said no to the Bitcoin plan. Bitstop? Gamebit? Gamecoin?
— Jim Cramer (@jimcramer) February 25, 2021
It is unusual for investors or consultants to suggest that a company changes its business model to justify the stock price. However, GameStop is no longer a typical “brick and mortar” (only physical branch office) company.
Retail investors from Reddit increased their GME stock price last month to boost their hedge fund investment. The result of these actions kept the game store at the head of financial news for several weeks. On February 18, the CEO of trading platform Robinhood spoke with representatives from Reddit and hedge fund Citadel on the Financial Services Committee about GameStop trading.