GameStop’s stock jumped 12% on Mar. 26, after announcing its investment in bitcoin as part of its updated strategy.

The company is following moves by firms like Strategy, the largest corporate holder of bitcoin, as cryptocurrencies gain traction in financial markets.

Analysts say the stock’s movement is now tied to its crypto venture rather than its retail operations.

Bitcoin hit an all-time high earlier this year and now trades at around US$88,000, down nearly 20% from its January peak.

Analysts warn that GameStop’s stock could face increased volatility due to its exposure to the crypto market.

Despite reporting a net income of US$131.3 million in Q4, more than double from the previous year, GameStop’s net sales dropped by 30% to US$1.28 billion as it shifts toward ecommerce under CEO Ryan Cohen.

Recent GameStop developments