GameStop Board Approves Bitcoin for Company Reserves
GameStop is making a return to crypto.
The video game retailer’s board has overwhelmingly approved adding Bitcoin to its treasury reserves, joining a growing number of corporations embracing digital assets for the future. The investment will be financed using existing funds or potential future debt or equity transactions. However, GameStop did not disclose the intended allocation amount in its latest quarterly report.
This move follows former President Donald Trump’s directive to establish a strategic cryptocurrency reserve using government-owned digital assets, further legitimizing Bitcoin in corporate finance.
With its roots in gaming culture and a strong following among the “degen” investor crowd—retail traders who fueled its stock surge during the 2021 meme stock frenzy—GameStop has remained a focal point for the crypto community.
The decision aligns with Strategy (formerly MicroStrategy), a company that has long championed Bitcoin as a strategic asset. By taking a similar path, GameStop signals its willingness to embrace risk and innovation as it looks beyond its struggling retail operations.
GameStop Boosts Profit Despite Revenue Decline and Store Closures
Despite ongoing challenges, GameStop posted a rare profit surge in its latest earnings report. Net income more than doubled to $131.3 million in Q4, up from $63.1 million the previous year, largely due to aggressive cost-cutting measures.
The company shuttered 590 U.S. stores in fiscal 2024 and plans to close even more in the coming year. Overall revenue dropped to $1.28 billion from $1.79 billion, highlighting the continued decline of its traditional gaming retail business.
