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Traders are currently monitoring movements in the stock market, particularly with GameStop Corp. and MicroStrategy. On Monday, shares of both companies experienced gains following a notable social media interaction. Ryan Cohen, the CEO of GameStop, shared a picture with Michael Saylor, the co-founder and chairman of MicroStrategy, a company recognized as a leading corporate holder of bitcoin.
As a result of this exchange, GameStop, which has gained popularity among retail investors as a meme stock, saw its shares rise by over 3%. Meanwhile, MicroStrategy, which has recently rebranded itself as “Strategy,” reported an increase of 2.6% in its stock value. The photo posted by Cohen on X over the weekend has led to speculation about potential new strategic initiatives involving cryptocurrency from GameStop.
In recent years, GameStop has attempted to diversify its offerings by delving into digital services, which included launching crypto wallets for users to manage their cryptocurrencies and non-fungible tokens (NFTs). However, this service was discontinued in 2023 due to the prevailing “regulatory uncertainty” in the cryptocurrency landscape.
Ryan Cohen, who previously co-founded the online pet supply company Chewy, initially bought into GameStop in 2020, later taking a board position in 2021. His involvement came during a period of intense trading interest driven by the WallStreetBets community, which propelled GameStop’s stock into the spotlight. Despite his efforts to modernize the traditional retail model of the company, GameStop continues to face challenges in adjusting to the evolving preferences of gamers, leading to ongoing volatility in its stock price, particularly as retail investor enthusiasm remains strong, partly due to figures like “Roaring Kitty,” a prominent meme stock advocate.
On the other hand, Saylor’s MicroStrategy has cultivated its own base among retail investors, primarily due to its bold strategy of investing in bitcoin. Over the past year, the company has secured billions in capital through stock and convertible bond sales specifically aimed at increasing its bitcoin holdings.
Recently, MicroStrategy announced significant progress toward its fundraising goals, having made extensive purchases in line with the post-election market rally. As of the latest update, the company holds approximately $47 billion in bitcoin, representing about 2.5% of the total market supply of the cryptocurrency.
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