Video game retailer GameStop announced a plan to build an NFT marketplace over the summer. Now, that plan is beginning to crystallize.
The company is creating a division to not only sell NFTs but also “establish cryptocurrency partnerships,” according to the Wall Street Journal.
GameStop has hired more than 20 people to work on the initiative.
It’s attempting to enlist game publishers and developers to sell on its new platform.
Two crypto companies are “close” to signing deals with GameStop to “share technology and co-invest.”
The company expects a “dozen” more to sign agreements. It will “invest tens of millions of dollars” in these companies.
Following the WSJ report, GameStop’s stock shot up more than 20%, though it dropped back to $140.62 by market close Friday.
New Business Outlook
Over the past several months, GameStop has focused on reinvigorating an ailing primary business model of selling in-store video games.
The company posted a net year-over-year increase of $1 billion in sales in Q3 for a total of $1.29 billion, but the overall business saw a net loss during the quarter of $105.4 million.
GameStop’s foray into the world of crypto is only one of several steps the retailer has taken. Last year, it added two former Amazon executives to its C-Suite.
The retailer also benefited from last year’s trading bonanza induced by “meme-stock enthusiasts.”