GameStop Shares Rise 20% Following News it will Launch NFT Marketplace

GameStop Shares Rise 20% Following News it will Launch NFT Marketplace

GameStop’s (NYSE: GME) stock skyrocketed 20% Friday morning following a report that the company is creating a nonfungible token, or NFT, marketplace. Additionally, the company is allegedly partnering up with two crypto companies in order to “share technology and co-invest in the development of games that use blockchain and NFT technology, as well as other NFT-related projects,” according to people familiar with the matter.

During the company’s recent earnings call, CEO Matt Furlong disclosed details on the plans for non-fungible tokens and crypto. This novelty comes after an intense 2021, as the retailer became a “meme stock” that gained popularity on Reddit. The company shares had fallen 12% in 2022 as of Thursday’s close.

“We’ve also been exploring emerging opportunities in blockchain, NFTs, and Web 3.0 gaming,” Furlong said during the call in December of 2021.

GameStop has hired over 20 people to work the new unit, according to the Wall Street Journal. Moreover, in 2021, the company welcomed Chewy co-founder Ryan Cohen as chairman. The video-game retailer has put a turnaround plan into action under Cohen, however, he has yet to share many details on his strategy.

“We are trying to do something that nobody in the retail space has ever done,” Cohen said at the company’s annual meeting in June of last year.

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