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Gamestop NFT Announcement Briefly Raises Company’s Stock Price

Gamestop NFT Announcement

GameStop Corp.’s ($GME) recent foray into NFTs with the GameStop NFT Marketplace briefly caused its share price to jump— but the rally was short-lived.

The used game and Funko Pop store that’s been a mall staple for decades has struggled to maintain the momentum it built from the meme stock rally last year. With many aspects of the modern games industry working against their original business model, GameStop is in the middle of a transition led by new board members.

One of the new directions the company has pursued is accepting cryptocurrency as payment, but a January 6 report from the Wall Street Journal (paywall) outlines how their NFT marketplace is the next step in their strategy.

According to the Wall Street Journal’s sources, over 20 people were hired by the company to manage a new team, and they are also in talks with two other companies to establish cryptocurrency partnerships. The move mirrors recent trademark filings by Walmart, since they also include plans for a digital marketplace and wallet.

Based on data gathered by Yahoo Finance, the price of GameStop stock jumped from a low of $123 to a high of $155 the day after the Wall Street Journal published their story. However, this 20% increase only lasted for the weekend, with the meme stock continuing its downward trend on the next trading day.

Although $GME’s bearish pattern over the past few months would typically attract short sellers, the stock’s short float is currently just below 14% according to MarketBeat.

It appears that hedge funds and other institutional investors are still wary after the ruthless short squeeze that propelled the company’s stock to meme status less than a year prior. At that time, $GME’s short float was 100 times larger, and the ensuing economic fallout of the meme stock rally caused at least one hedge fund to close its doors.

Visitors can apply to join a waitlist if interested in becoming a vendor on GameStop NFT Marketplace.


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Michael Valverde is a freelance writer and editor. His favorite video game is Half-Life.