Just as video game maker GameStop announced its plans of building a Bitcoin reserve its firms, market analysts are now expecting Japanese giant Nintendo to follow the trail.
While we're still waiting for news of a Bitcoin addition to the balance sheet, a popular Bitcoin investor thinks that Japanese video game giant Nintendo (OTC:NDEA) could be a good candidate to follow in the footsteps of his peers in the U.S. to integrate BTC into its portfolio.
As Consorti pointed out, Nintendo has more than $14.8 billion in cash on the balance sheet, which could be used to diversify the company's portfolio and potentially enhance its equity performance with an unconventional asset class like Bitcoin.
This approach has been quite popular among public-listed firms in recent times, especially those seeking to stand out from the crowd and capitalize on emerging trends. A perfect example is Japanese firm Metaplanet (TYO:6173), which has seen its stock price increase by 2,300% over the past year as it adopted what some call 'Michael Saylor's Bitcoin playbook.'
With the launch of the Nintendo Switch 2 also on the horizon, Consorti believes that now would be an opportune time for the company to adopt BTC. "It's a no-brainer, Nintendo," Consorti concluded in a recent tweet.
However, some market participants remain skeptical about GameStop's actions, particularly given its status as a so-called 'meme stock' among retail investors. In response to Consorti's statement, one user, Yassica, expressed skepticism, stating that no one takes GameSameStop seriously and that it's a meme company.
"No one is looking at them for an example. When a company that isn't dying adds more to their balance sheet, meta for example, then people will look at BTC."
After announcing plans to build a Bitcoin reserve, the GameStop (NYSE:GME) stock price surged massively by 11.65% on Wednesday, adding $1.655 billion to its market capitalization. This move showcases the growing interest among shareholders in companies holding Bitcoin Treasury.
In other news, we learned that GameStop is planning to issue $1.3 billion in convertible senior notes. The company intends to use the net proceeds to acquire Bitcoin, further solidifying its move into the cryptocurrency domain.
As Consorti highlighted, with $4.7 billion in cash, GameStop has 10 times larger resources than MicroStrategy (NASDAQ:MCRI) did in 2020 when it began its Bitcoin journey. Moreover, the firm has secured full board approval to allocate proceeds from debt and equity raises into Bitcoin.
