GameStop (GME) Themed Memecoin Skyrockets After Retailer Adopts Bitcoin as Treasury Asset

A memecoin named after GameStop Corp. GME skyrocketed to triple-digit gains Tuesday after the video game retailer

Memecoin 'GameStop' Inc (NYSE:GME) is heating up in the market, displaying a triple-digit percent gain on Tuesday morning. The coin, which is not related to the video game retailer, is showing a 467% rise in the last 24 hours.

What Happened: BNB Chain-based GameStop Coin (GME) has surged to an incredible extent, dwarfing the returns generated by blue-chip cryptocurrencies like Bitcoin (BTC) and Dogecoin (DOGE).

The latest uptick has also increased the coin's monthly returns to 422781.61%. However, a closer look at its trajectory reveals periods of short-term rise followed by a sharp collapse, highlighting its speculative nature.

It's important to note that this cryptocurrency is not linked to GameStop in any way and aims to capitalize on the hype surrounding the meme stock.

The surge follows the company's board of directors' unanimous decision to update its investment policies and add Bitcoin (BTC) to its treasury reserve assets.

The decision comes after weeks of speculation regarding GameStop's foray into Bitcoin investments. Last month, the firm's CEO, Ryan Cohen, posted a picture with Michael Saylor, founder of the world's biggest Bitcoin treasury company, Strategy.

GameStop reported its fourth-quarter earnings after Tuesday’s market close, with adjusted earnings of 30 cents per share, beating analyst estimates of eight cents per share. It reported a fourth-quarter revenue of $1.283 billion, missing the consensus estimate of $1.48 billion.

Also Read: Elizabeth Warren Questions Trump’s SEC Pick Paul Atkins On FTX Ties, TRUMP Memecoin Conflict Of Interest

Later, the company's shares rose 8.27% in after-hours trading, following a 0.82% decrease to $25.40 during Tuesday's regular trading session, as per Benzinga Pro.

As of the latest update, GME exhibited high momentum—a measure of a stock's relative strength based on its price movement patterns and volatility. Benzinga's Edge Rankings score could help you identify stocks with higher momentum.

Finally, investing in meme coins and cryptocurrencies is highly speculative and involves significant risk. Meme coins often lack intrinsic value and are driven by market sentiment, social media trends, and speculative trading.