Twitter is swelling with rumors of a master plan coming from the Ryan Cohen-led GameStop (NYSE:GME) board. Holders and retail trading conspiracy theorists are piecing together a thought-provoking puzzle. Could GME stock be primed for a company-triggered short squeeze? Some think a master plan is afoot.
There are a few nuggets one must consider for context around this proposed short squeeze plan. First, one must know that GameStop sought out a blockchain analyst back in April, particularly somebody familiar with crypto and NFTs.
Secondly, it’s helpful to know about Overstock’s (NASDAQ:OSTK) self-executed short squeeze, in which the company paid out its dividends to holders in an obscure OSTK cryptocurrency. Short sellers were forced to cover their shorts or risk having the dividends dumped into their laps. They couldn’t afford to pay them anyway, since Overstock only issued enough coins to reach the investors. As a result, the stock rocketed 60% in two weeks.
Thirdly, one must be aware of the GameStop NFT website that has popped up in recent weeks, complete with its own wallet address. The website, and the wallet address within, suggest the company is developing an NFT platform utilizing Ethereum’s (CCC:ETH-USD) protocol and token standard. The company is now involved in cryptocurrency in some capacity.
GME Stock: Twitter Explodes With Rumors of GameStop’s Crypto Dividends
Reddit users have been gossiping over the idea of a GameStop crypto dividend for months now. One user’s deep dive suggests GME can do the same thing that Overstock did, while escaping the legal challenges the company faced from leaving short sellers without any crypto to buy to pay the dividend.
A Twitter user is fanning the flames today with more “evidence” for the theory. The user points out a GME token of some kind, with a launch date of “1626261600.” This Unix timestamp translates to an exact date of July 14, 2021. Of course, the rumor mill is now churning at full capacity, with thousands of users tweeting in response to the rumors, or adding their own speculation.
Without any confirmation that this is happening, be extremely cautious. However, this is certainly a story to keep watching.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.