Shares of GameStop (GME -0.59%) are rising 6.9% in noontime trading Thursday as reports come out that the video game retailer's new non-fungible token (NFT) marketplace is off to a faster start than many expected.
It was just launched on Monday, and CNET reports over $3.5 million worth of transactions have already been conducted on the marketplace.
GameStop NFT, what the video game retailer calls its marketplace, is part of chairman Ryan Cohen's attempt to reshape the company to match its increasingly online and digital industry. GameStop has long been dependent on its physical retail stores, but as gaming itself has moved to digital gaming and game downloads, Cohen says it's essential GameStop evolve too.
Cohen famously said he wanted GameStop to become "the Amazon of gaming." The NFT marketplace is but one piece of the puzzle, though Cohen hasn't revealed too many of the other pieces that will go along with it.
But NFTs are among of the most visible, if also somewhat controversial, means of achieving his goals. Particularly in the wake of the crash of the cryptocurrency market and of NFTs in general, many believed this was a waste of resources for the video game shop to be pursuing. Which is why GameStop investors are undoubtedly cheering its early success.
It still remains to be seen how viable this can be over the long haul. According to CNET, GameStop is looking to compete against OpenSea, the biggest NFT marketplace, which has generated some $17 billion in transactions this year.
GameStop's cut of the action on the marketplace isn't all that either. With a royalty fee of about 2.25% on each transaction, GameStop has generated a little more than $67,000 for its effort. That's not going to move the needle on its business, but it's still early days, and investors are counting on it growing.