GameStop share price is bouncing after revealing plan to buy Bitcoin in untested strategy which it admits ‘may prove unsuccessful’

• GameStop shares surged after the company announced it is investing in Bitcoin as “a treasury reserve asset,” with no set limit on how much it plans to buy.

GameStop shares are bouncing today on the news that the meme-stock darling is investing an undisclosed amount of its cash reserves in Bitcoin.

And it seems the sky is the limit when it comes to spending on cryptocurrency, with GameStop confirming in an SEC filing that it had not set a “maximum amount” on how much it plans to buy.

GameStop’s share price is up 14% since the close on Tuesday at the time of publishing.

While financial institutions are still eyeing just how far they want to diversify into assets like crypto given their volatility, GameStop backers were buoyed by the news after months of speculation.

Despite the view of many on Wall Street that Bitcoin is still an asset too rogue to be adopted into the mainstream, the asset has seen massive gains, especially since President Trump’s inauguration.

In the past six months, the price of Bitcoin has spiked more than 40% to $87,104—and is up more than 1,245% over the past five years.

In that time, the cryptocurrency has also suffered huge fluctuations, but this is unlikely to faze GameStop shareholders.

After all, they’ve been along for a bumpy ride with the video game retailer.

In 2021 GameStop made headlines when retail investors—connected via social media platform Reddit—coordinated a share purchase program after noticing institutional investors were offloading the stock.

The retail investors, led by Keith Gill, a.k.a. investor-influencer Roaring Kitty, sent the share price spiraling to all-time highs, and, with this influx of new supporters, GameStop shifted to an e-commerce platform under new leadership.

Since then, the price of GameStop (GME) has fluctuated significantly, but it has experienced a boost in recent days, courtesy of the company’s latest announcement.

Yesterday, the company said in a statement that “its board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset.”

In an SEC filing seen by Fortune and published the same day, GameStop added: “The board approved the addition of Bitcoin as a treasury reserve asset, whereby a portion of our cash or future debt and equity issuances may be invested in Bitcoin.”

“We may sell any Bitcoin we may acquire,” it continued.

GME could buy a lot of Bitcoin if it wished: The SEC filing this week confirmed that as of Feb. 1, the business held nearly $4.8 billion in cash.

Bitcoin as a risk

While many GME backers will be accustomed to a level of risk with the business, the company is making it clear to shareholders it knows the risks.

The SEC filing this month noted that Bitcoin purchases pose risks to the business in various ways.

The first is if the value of the investment declines, it explains: “The company’s investment policy permits the company to invest from time to time in securities and certain cryptocurrencies, including Bitcoin and U.S.-dollar-denominated stablecoins, and the company is, and will be, exposed to market volatility in connection with these investments.

“The company’s financial position and financial performance could be adversely affected by worsening market conditions or poor performance of such investments. Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful.”

A second consideration is that investing in crypto inherently comes with its own set of risks. The filing adds: “The Bitcoin markets have historically experienced significant volatility in price, limited liquidity and trading volumes, relative anonymity, potential susceptibility to market abuse and manipulation, compliance and internal control failures at exchanges, and other risks inherent in its entirely electronic, virtual form and decentralized network.

“We are continually examining the risks and rewards of our strategy to acquire and hold Bitcoin. By investing in Bitcoin, we may become subject to counterparty risk, such as with our Bitcoin custodians and those with whom we transact in Bitcoin or other cryptocurrencies.”

GameStop did not respond to Fortune’s request for comment.

This story was originally featured on Fortune.com