GameStop shares surge on report it will create NFT marketplace

KEY POINTS

• GameStop shares rose in extended trading Thursday after The Wall Street Journal reported the retailer plans to create a marketplace for non-fungible tokens, or NFTs.
• The reports suggest that GameStop, which has been at the center of a retail trader frenzy, will expand into one of the most hyped sectors in technology.

GameStop shares rose more than 22% in extended trading Thursday after The Wall Street Journal reported the retailer plans to create a marketplace for non-fungible tokens, often called NFTs.

GameStop also plans to establish cryptocurrency partnerships to create games and items for the marketplace, according to the report, which cited people familiar with the matter.

The report suggests that GameStop, which has been at the center of a retail trader frenzy, will expand into one of the most hyped sectors in technology. OpenSea, the best-known NFT marketplace, was recently valued at $13.3 billion by investors.

NFTs are a kind of technology that allows proof of ownership of digital goods to be stored on a blockchain, often Etherium. NFT prices have risen in recent months driven by enthusiasm from cryptocurrency holders about the potential for the technology.

GameStop's marketplace will focus on virtual video game goods such as character outfits and weapons, according to the report.

GameStop didn't immediately respond to a request for comment. At its closing price on Thursday, GameStop stock is down over 59% from its peak in January 2021.