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. With more than $14.88 billion in cash in hand, the Japanese video game maker could stir major BTC price moves by adopting Michael Saylor’s Bitcoin playbook.
Will Nintendo Add Bitcoins to Its Balance Sheet?
Popular Bitcoin investor Joe Consorti stated that the Japanese video game giant Nintendo has more than $14.8 billion worth of cash on its balance sheet. Thus, he stated that the gamemaker could enhance its equity performance by adding Bitcoin (BTC) to its balance sheet.
This approach has been quite popular among public-listed firms, who have been adopting Michael Saylor’s Bitcoin playbook. Japanese firm Metaplanet has demonstrated its success by adopting the Bitcoin Strategy, with its stock price shooting 2,300% over the past year.
Consorti pointed out that with the launch of the Nintendo Switch 2 on the horizon, now would be an opportune time for the company to adopt BTC. “It’s a no-brainer, Nintendo,” Consorti tweeted.
GameStop’s Bitcoin adoption has recently stirred mixed responses from market participants. some players still it as a meme stock from the 2021 bull market rally. Responding to Consorti, one user, Yassica, wrote: “No one takes GameStop seriously. 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”.
GameStop Shares Details of Its BTC Acquisition Plan
Soon after Bitcoin reserve plans, the GameStop (NYSE: GME) stock surged by a massive 11.65% on Wednesday, with its market capitalization surging by $1.655 billion. This shows the growing appetite among shareholders for firms to build their Bitcoin Treasury.
Without wasting much time, GameStop announced the issuance of $1.3 billion in convertible senior notes. The company plans to use the proceeds to purchase Bitcoin, further solidifying its move into the cryptocurrency space.
Joe consorti further added that with $4.7 billion in cash, GameStop has resources 10 times larger than MicroStrategy’s in 2020. He also stated that the firm has secured full board approval to allocate proceeds from debt and equity raises into Bitcoin.
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