Host of Mad Money on CNBC, Jim Cramer suggests that GameStop should convert their street-based shops into Crypto business centers where gamers can do business using Cryptocurrency.
According to Jim, the continuous growth in stocks of the company show a significant rise in value meaning that the company can switch its business model to a more crypto centric one. In attempt to justify the stock price of GameStop, Jim stated that the company can use their stores to build international gaming hubs where gamers can win rewards and deal in Bitcoin. The current price of GameStop Inc (GME) is standing at around $131 which already has had increase of more than 175% in the last day.
Jim also suggested that GameStop should follow the steps of PayPal and start dealing in crypto currencies due to the massive increase in popularity of crypto in the past year. He added by stating that these Gaming hubs or Crypto Information Centers can allow gamers to buy and sell in Cryptocurrencies and can also be offered cryptocurrencies as rewards in well-planned gaming tournaments for presenting outstanding gaming skills.
Is The Plan Worth It?
Jim is confident that CEO of Chewy, Ryan Cohen who is GameStop’s most large-scale investor can use his convincing power to push an agreement with the board of directors to purchase up to $2 Billion worth of Bitcoin that can help sustain these Crypto Information Centers. He even came up with interesting new names for the GameStop’s cryptocurrency like Gamebit, Gamecoin.
Changing a massive company’s already well-established business model isn’t an easy task to do. Strong convincing power is needed to fully gain the trust of the board of directors to implement such a massive change.
Considering the massive stock price, GameStop is not likely seen by many people as a street-based company anymore. The gaming store has been at the front of news headlines for many weeks due to the retail investors from Reddit driving the stock price of GameStop up, showing a consistent upward trend since the past month in hopes of squeezing out left over hedge fund bets.