The US-based videogame retailer GameStop (GME) saga that eventually spilled into the cryptoverse just was restarted. While things might’ve been relatively quiet on that front in the past few days, the company’s stocks have jumped more than a 100% yet again before dropping sharply.
The price doubled yesterday and after surging higher today, corrected down, triggering its third trading halt for volatility in the past 24 hours. At the time of writing (15:13 UTC), it trades at around USD 92, dropping from USD 175, reached today.
Though this jump is substantial, it’s notable that the price had risen as high as USD 483 last month.
“GameStop’s surge in Wednesday’s cash session was spurred by a final-hour rally that brought its biggest advance since Jan. 29, the day Robinhood Markets restricted trading in it and 49 other stocks at the height of the frenzy,” per Bloomberg data. As to why the rally occurred, there are various explanations, including Chief Financial Officer Jim Bell being “pushed out in a disagreement over strategy,” in favour of Ryan Cohen, the co-founder of online pet-food retailer Chewy.com.
What you see right now when sorting r/WSB by new pic.twitter.com/IVp21gjf2V
— Brian Fung (@b_fung) February 24, 2021
“It seems like the Reddit crowd is still active and when you see a bit of news like that they’re pressing again,” Keith Gangl, portfolio manager at Gradient Investments, told Bloomberg, adding: “Though I’m not sure how that’ll last.”
Meanwhile, CNBC TV host and TheStreet founder Jim Cramer suggested to GameStop in a series of tweets to purchase USD 1bn in bitcoin (BTC):