Mad Money host Jim Cramer thinks he has a solution to save troubled video game retailer Gamestop with the help of bitcoin. He suggests that Gamestop should raise money to buy the cryptocurrency, then convert its 5,000 locations into bitcoin stores. He believes his idea will work.
Jim Cramer Has Idea to Use Bitcoin to Save Gamestop
Mad Money Jim Cramer said on CNBC last week that he believes he has come up with a viable plan to help video game retailer Gamestop (GME). He said his idea will fix the companys valuation. The Gamestop stock surged by over 100% last week after the company announced that its CFO Jim Bell would resign.
His idea is for Gamestop to “become a dealer in crypto.” He noted that it is what Square and Paypal are doing, which he initially thought “seemed ridiculous” but then it “was ok.” Cramer is the host of Mad Money on CNBC and a former hedge fund manager who co-founded the financial website Thestreet.com.
Cramer also pointed out that Nvidia is coming up with graphics cards for crypto. “Last night on the unbelievably good Nvidia call, as a side note, they talked about March. [They‘re] going to have some actual cards just for crypto. It really won’t be important for Nvidia, but it could be important for a place like Gamestop,” the Mad Money host described. He continued:
“If Gamestop were to turn itself into a 5,000-store introduction to crypto, make it so that they sell $1 billion worth of stock … and buy crypto with it, and then make it so its an international gaming place where you win bitcoin, I think you can justify the stock price.”
“And it doesnt have to be bitcoin. We can make it crypto,” he clarified. “But turn it into a crypto information palace and you have worldwide games, no latency, you play it.”
He tweeted telling Gamestop board member Ryan Cohen to tell “the board to sell 10 million shares of Gamestop at $200 and buy bitcoin and say Gamestop is now a bitcoin store that also sells games.”
Cramer has floated the idea of turning Gamestop stores into a bitcoin empire before. On Feb. 5, he tweeted:
“Gamestop needs to be a 5,000 store bitcoin palace. I cannot believe how brilliant that would be … They can sell stock, buy a ton of bitcoin and just hold on. Call it Bitstop. Or Gamecoin.”
“I have not been able to come up with anything else, but this works,” he concluded. “I have a feeling that this is the way to get this stock higher. I cant come up with another way.”