The GameStop board approves Bitcoin for company reserves.
GameStop is returning to crypto.
The video game retailer's board overwhelmingly authorized the inclusion of Bitcoin to its treasury reserves on Tuesday, joining a growing number of corporations positioning themselves for a digital future.
Bitcoin investment will be funded by current funds or future debt or equity transactions, according to the business.
In its recent quarterly report, GameStop did not specify the projected allocation amount.
The move follows President Donald Trump's unilateral order to create a strategic cryptocurrency reserve using government-owned digital assets, paving the way for Bitcoin in corporate financing.
GameStop Considers Bitcoin Long-Term After Shelving Wallet Plans
According to CNBC, the corporation was exploring adding Bitcoin and other cryptocurrencies to its balance sheet in February.
GameStop has dabbled with crypto before. The firm introduced a crypto wallet in 2022 to ride the Web3 wave, but it closed a year later due to “regulatory uncertainty.”
GameStop has been widely observed by the crypto-curious community due to its origins in gamer culture and its ties to the “degen” crowd, retail investors who pushed its stock sky-high during the 2021 meme stock mania.
The decision follows Strategy (previously MicroStrategy)'s longtime promotion of Bitcoin as a strategic asset. Gamestop's choice to take a similar route implies a greater appetite for risk and relevance as it seeks to go beyond its faltering retail sector.
GameStop Doubles Profit Despite Revenue Drops and Store Closures
GameStop had a rare bright light in its last earnings report despite its troubles. Net income quadrupled to $131.3m in the fourth quarter from $63.1m a year earlier due to significant cost-cutting.
The corporation closed 590 US outlets in fiscal 2024 and wants to close more this year. Overall sales declined to $1.28b from $1.79b, indicating its conventional gaming retail business's deterioration.
#GameStopBitcoinReserve #WhaleMovements #USTariffs $BTC $ETH $XRP
