Will GameStop, AMC Follow MicroStrategy, Rumble Into Bitcoin?

MicroStrategy Inc (NASDAQ:MSTR) drove market conversations around a “Bitcoin treasury,” whereby companies allocate treasury funds to Bitcoin (CRYPTO: BTC) rather than traditional investments. Rumble Inc (NASDAQ:RUM) followed suit, as revealed in an announcement on Monday. This begs the question: Which companies will adopt Bitcoin next?

The Announcement: Shares of Rumble jumped over 3% on Tuesday morning following the company board’s approval of a Bitcoin plan. The strategy involves potential investments of up to $20 million in Bitcoin, or approximately 212 coins at current market prices.

MicroStrategy’s stock has catapulted over 400% in 2024 due to the company’s high exposure to Bitcoin.

Commentators Catch On: Angel investor Jason Calacanis reacted sarcastically to the decision in a post on X.

“Let's get GameStop to move cash to btc next! To the moon 🚀😂😂😂,” Calacanis posted. “What could go wrong!”

Other users joked that MicroStrategy CEO Michael Saylor had created an “perpetual money printing machine.”

What’s Next?: It stands to reason that this strategy may not be out of bounds for many companies with high retail investor engagement. At the height of the Covid trading boom, stocks like GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC) were often favorites and saw increased trading volumes and activity. Benzinga has contacted both companies for comment on the matter.

GameStop’s board approved a plan in 2023 allowing CEO Ryan Cohen to have increased control over the company’s large cash hoard. Cohen could allocate cash to alternative investments.

Some investors are seemingly not enthused. A Benzinga poll in June found that GameStop followers were least interested in cryptocurrency investments among other potential company announcements.

Also Read:

• Bitcoin Correction Could Go As Deep As $88,700 But $125,000 Year-End Target Remains In Play, Says Standard Chartered

Image created using artificial intelligence via Midjourney.