GameStop (GME.US) saw a rise after-hours, as it is reportedly considering investing in Bitcoin and other cryptocurrencies.

GameStop is reportedly considering investing in bitcoin and other cryptocurrencies. Shares of the video game retailer rose more than 7% after-hours on Thursday, and as much as 19% at one point, on the news.

GameStop launched a crypto wallet in 2022 that allowed users to manage their cryptocurrencies and NFTs, but closed the service in 2023 due to "regulatory uncertainty," according to three people familiar with the matter. GameStop is exploring investing in alternative assets, particularly cryptocurrencies, the people said. The company could also decide not to invest. The company is still considering whether it makes sense for its business, the people said.

Over the weekend, GameStop CEO Ryan Cohen posted a photo on social media platform X of himself with Michael Saylor, co-founder and chairman of MicroStrategy, which is the largest publicly traded company to hold bitcoin and saw its market value soar as the cryptocurrency rose in price, though its stock has been volatile. However, the people said Saylor is not currently involved in GameStop's discussions about investing in cryptocurrencies.

Cohen began buying GameStop shares in 2020 and joined the company's board in 2021. His e-commerce expertise fueled hopes that he would help modernize the brick-and-mortar retailer during its emergence as a popular meme stock. However, the company is still trying to adapt to changing consumer habits among gamers.

Under Cohen's leadership, GameStop has focused on cutting costs and streamlining operations to ensure it can make money even if its business doesn't grow. As of Nov. 2, the company had amassed $4.6 billion in cash reserves and has been using those funds to invest, according to a December filing with securities regulators.

Also noteworthy, in December 2023, GameStop's board approved a new "investment policy" that allows Cohen and two independent board members, along with any necessary personnel, to manage the company's investment portfolio.