GameStop is doubling down on cryptocurrencies, and on Wednesday, it announced a new collaboration with crypto exchange FTX as part of its ongoing development into blockchain technologies.
The gaming retailer said on September 7 that the new partnership would make GameStop’s customers more familiar with the FTX ecosystem, including its marketplaces for virtual assets. GameStop will also become FTX’s “preferred retail partner in the United States.”
The two firms provided a few clues about what the cooperation will entail, though they haven’t given too many specifics. According to a press release, the partnership goal is to connect more GameStop customers to the FTX community and its marketplaces for digital assets. In extended trading, GameStop shares, down 35% this year, increased by 11%.
Additionally, some GameStop retail locations will sell FTX gift cards as part of the deal. There were 2,970 GameStop locations in the country as of August 31.
What does this partnership signal?
By collaborating with FTX, GameStop appears to demonstrate that it is still committed to the crypto industry. However, the partnership may also benefit both businesses as they strive to survive the so-called crypto winter. CEO and co-founder of FTX, Sam Bankman-Fried, tried to save certain struggling crypto businesses like Voyager and BlockFi as their prices fell earlier this year, though he recently claimed that those investments had “mixed” results.
Not only has GameStop lately partnered with FTX, but Reddit has also done so. In addition, to increase its visibility, FTX has also heavily invested in Super Bowl advertisements and sponsored several sports teams and leagues.
