The video game retailer and meme stock sensation, GameStop, is reportedly exploring opportunities to invest in bitcoin and various other cryptocurrencies, as shared by sources close to the situation.

According to three insiders, GameStop is assessing the potential for investments in alternative asset classes, particularly focusing on cryptocurrencies like bitcoin. Following this news, GameStop’s stock climbed as much as 20% during after-hours trading.

However, the company may ultimately decide against pursuing these investments. One source indicated that GameStop is still evaluating whether this move aligns well with its business strategy.

Recently, CEO Ryan Cohen shared a photo on social media platform X with Michael Saylor, the co-founder and chairman of MicroStrategy, which is renowned for being the largest corporate holder of bitcoin. However, sources reported that Saylor is not currently engaged in GameStop’s discussions regarding crypto investments.

In 2022, GameStop introduced crypto wallets for users to manage their cryptocurrency and non-fungible tokens (NFTs). Unfortunately, the company discontinued this service in 2023, citing “regulatory uncertainty” as the primary reason.

Cohen, who co-founded Chewy, began purchasing GameStop shares in 2020 and joined the board in 2021 during the peak of the meme stock phenomenon. His experience in e-commerce has raised hopes for the modernization of the brick-and-mortar retailer, but GameStop continues to face challenges in adapting to the evolving purchasing habits of gamers.

Under Cohen’s guidance, GameStop has emphasized cost reduction and operational efficiency to maintain profitability, even without significant growth. As of November 2, the company had accumulated a cash reserve of $4.6 billion, using these funds for strategic investments, as noted in a securities filing from December.

Businesses contemplating bitcoin investments would be aligning themselves with trends set by MicroStrategy. This firm, recently rebranded as Strategy, has invested billions in bitcoin over recent years, effectively shifting from a software-focused company to one that primarily holds bitcoin assets.

This strategy has contributed to a significant, albeit volatile, increase in Strategy’s stock value.

In December 2023, GameStop’s board established a new investment policy. This policy delegates management of the company’s investment portfolio to Cohen, along with two independent board members and relevant staff. All investments must adhere to the policy guidelines or require approval through a unanimous vote by the committee or a majority vote by the full board.