GameStop Has Taken a Page Out of MicroStrategy's Playbook. Can It Save the Struggling Stock?
In 2020, MicroStrategy (now doing business as Strategy) and its co-founder Michael Saylor embarked on a novel concept. They began using the company's capital to buy Bitcoin, the world's largest cryptocurrency.Saylor believed that the token's finite supply could make it a hedge against inflation and, therefore, a smart investment. Saylor's bet would pay off far better than anyone could have imagined. MicroStrategy stock has rocketed roughly 2,970% (as of June 9) since the company's first Bitcoin purchase, and the company gained enough credibility that it could raise fresh capital from the capital markets to go out and buy Bitcoin. The company now owns over 2.5% of all outstanding Bitcoin tokens and refers to itself as a Bitcoin treasury company.Seeing the company's success, as well as Bitcoin's continued appreciation, other companies are now taking a page from MicroStrategy's playbook. The struggling video game retailer GameStop (NYSE: GME), which saw its share price explode during the meme stock craze in 2020 and 2021, recently made a big purchase of Bitcoin too. Can this strategy save the struggling stock?Continue reading
In 2020, MicroStrategy (now doing business as Strategy) and its co-founder Michael Saylor embarked on a novel concept. They began using the company's capital to buy Bitcoin, the world's largest cryptocurrency.
Saylor believed that the token's finite supply could make it a hedge against inflation and, therefore, a smart investment. Saylor's bet would pay off far better than anyone could have imagined. MicroStrategy stock has rocketed roughly 2,970% (as of June 9) since the company's first Bitcoin purchase, and the company gained enough credibility that it could raise fresh capital from the capital markets to go out and buy Bitcoin. The company now owns over 2.5% of all outstanding Bitcoin tokens and refers to itself as a Bitcoin treasury company.
Seeing the company's success, as well as Bitcoin's continued appreciation, other companies are now taking a page from MicroStrategy's playbook. The struggling video game retailer GameStop (NYSE: GME), which saw its share price explode during the meme stock craze in 2020 and 2021, recently made a big purchase of Bitcoin too. Can this strategy save the struggling stock?
