‼️UPDATE ABOUT#GameStopBitcoinReserve ‼️
GameStop Corp. (GME), the renowned video game retailer, has recently updated its investment policy to include Bitcoin as a treasury reserve asset. This strategic move aligns GameStop with other major corporations, such as Strategy (formerly MicroStrategy), that have adopted similar cryptocurrency investment strategies.
As of February 1, GameStop reported holding nearly $4.8 billion in cash and equivalents. The company plans to allocate a portion of these funds, along with potential future debt and equity issuances, to Bitcoin investments. Notably, GameStop has not set a maximum limit on the amount of Bitcoin it may acquire, indicating a significant commitment to integrating cryptocurrency into its financial operations.
This decision comes shortly after President Donald Trump's executive order to establish a strategic reserve of cryptocurrencies using government-owned tokens. GameStop's move reflects a broader trend among corporations seeking to diversify their assets and capitalize on the growing prominence of digital currencies.
In conjunction with its investment announcement, GameStop reported a substantial increase in fourth-quarter net income, rising to $131.3 million from $63.1 million in the same period the previous year. However, revenue declined to $1.28 billion from $1.79 billion, highlighting ongoing challenges in the retail sector amid a shift towards digital downloads and e-commerce.
Additionally, GameStop has been actively restructuring its retail operations, closing 590 stores in the U.S. during fiscal 2024, and anticipates closing a "significant number" of additional stores in fiscal 2025. These efforts are part of a broader strategy to streamline operations and adapt to the evolving gaming market.
