GameStop Eyes Bitcoin as Nasdaq's Coinbase Soars

GameStop, the video game retailer that gained notoriety during the meme stock frenzy, is reportedly exploring investments in alternative asset classes, with a particular focus on bitcoin. The retailer, however, is still evaluating the potential benefits of such an investment and has not made a final decision.

Last week, GameStop's CEO Ryan Cohen posted a picture on social media with the co-founder and chairman of Strategy, the largest corporate holder of bitcoin. While Saylor is not currently involved in GameStop's crypto investment discussions, the retailer has amassed a $4.6 billion cash pile and has been actively pursuing investment opportunities.

Meanwhile, Nasdaq-listed cryptocurrency exchange Coinbase has reported a significant surge in its fourth-quarter and full-year earnings, exceeding analysts' expectations. The company posted net income of $579 million and revenue of $2.3 billion, more than double the $1.13 billion it reported in the third quarter of the year. Coinbase's fourth-quarter transaction revenue soared 172% quarter-over-quarter to $1.6 billion, up from $529 million in the same period last year. For the full year, its revenue was $6.6 billion, more than double the $3.1 billion recorded in 2023.

Leading stablecoin issuer Tether could face significant challenges if proposed U.S. stablecoin regulations become law, according to a research report published by JPMorgan Chase. Two bills, the Senate's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and the House of Representatives STABLE Act, are currently under consideration. The report suggests that Tether may need to liquidate a portion of its bitcoin reserves to comply with the new rules, as its reserves are only 66% compliant under the STABLE Act and 83% under the GENIUS Act.