GameStop's (GME) stock surged by more than 6% during after-hours trading on Tuesday after announcing its decision to use its cash reserves to purchase bitcoin (BTC-USD). The video game retailer, which gained popularity as a meme stock, revealed that its board had unanimously agreed to update its investment policy to include Bitcoin as part of its treasury reserve assets.

This move follows reports from about a month ago that GameStop was exploring potential investments in cryptocurrencies. The company's CEO, Ryan Cohen, hinted at this interest through a social media post featuring him alongside MicroStrategy's CEO, Michael Saylor, a known advocate for bitcoin. MicroStrategy has experienced significant stock growth over the past year due to its association with the rising value of bitcoin.

Despite GameStop's decision to invest in bitcoin, financial analysts are cautious about its impact on the company's stock value. There are concerns that emulating MicroStrategy's strategy may not necessarily lead to an increase in GameStop's stock price. During the same period, GameStop reported its fourth-quarter earnings results, which showed a 28% decrease in net sales compared to the previous year.

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