GameStop Diving Into NFTs, Crypto

Video game retailer GameStop announced a plan to build an NFT marketplace over the summer. Now, that plan is beginning to crystallize.

The company is creating a division to not only sell NFTs but also “establish cryptocurrency partnerships,” according to the Wall Street Journal.

• GameStop has hired more than 20 people to work on the initiative.
• It’s attempting to enlist game publishers and developers to sell on its new platform.
• Two crypto companies are “close” to signing deals with GameStop to “share technology and co-invest.”
• The company expects a “dozen” more to sign agreements. It will “invest tens of millions of dollars” in these companies.

Following the WSJ report, GameStop’s stock shot up more than 20%, though it dropped back to $140.62 by market close Friday.

New Business Outlook

Over the past several months, GameStop has focused on reinvigorating an ailing primary business model of selling in-store video games.

The company posted a net year-over-year increase of $1 billion in sales in Q3 for a total of $1.29 billion, but the overall business saw a net loss during the quarter of $105.4 million.

GameStop’s foray into the world of crypto is only one of several steps the retailer has taken. Last year, it added two former Amazon executives to its C-Suite.

The retailer also benefited from last year’s trading bonanza induced by “meme-stock enthusiasts.”