GameStop CEO Ryan Cohen has teased the possibility of the video game retailer accepting cryptocurrency for trading card and collectible purchases. The move details the company’s shift away from video game hardware amid rising costs and explores potential applications for the burgeoning digital asset beyond speculative investment.

Speaking on CNBC’s “Squawk Box,” Cohen indicated that while GameStop has invested in Bitcoin (BTC) as a hedge against inflation, its exploration of crypto payments is distinct from the approach taken by companies like MicroStrategy.

“There’s an opportunity to buy trading cards and to do so using cryptocurrency… The utility of crypto beyond investing is a hedge against inflation. I think so far that’s been the biggest demand for crypto, and so the ability to actually use crypto within transactions is something that we’re looking at.”

GameStop Considering All Cryptocurrencies

Cohen declined to specify which cryptocurrencies GameStop is evaluating for a potential acceptance strategy. He noted the company’s broader financial strategy focuses on deploying its strong balance sheet ($9 billion+ in cash equivalents) prudently, seeking “limited downside and a lot of upside”.

GameStop has previously explored crypto-related initiatives that subsequently folded due to regulatory uncertainties. These include an NFT marketplace launched earlier but shut down effective January 2024, alongside a crypto wallet service discontinued in November 2023.

GameStop’s Record-Breaking Bitcoin Purchase

In May 2024, GameStop executed a major cryptocurrency investment by acquiring ~4,710 BTC worth over $500 million, joining a wave of corporate Bitcoin purchases driven primarily by concerns over fiat currency devaluation.

Cohen framed this as a strategic capital deployment distinct from Michael Saylor’s MicroStrategy focus, emphasizing “our own unique strategy” guided by the company’s substantial cash reserves.

Further evidence of GameStop’s commitment to alternative investments emerged in June 2024 when the company secured an additional $450 million in a convertible note offering.

No Market Reaction Following Payment Tease

While GameStop stock surged in February 2024 amid speculation about alternative asset class investments, including crypto, there was no discernible market reaction to the recent payments initiative speculation. By late 2024, GME shares were trading down ~2% despite Cohen’s remarks.

The company’s stock trajectory during late initial Bitcoin discussion saw volatility—rising ~30% pre-Bitcoin purchase and then dropping ~22% following an increase in its planned financing.