#GameStopBitcoinReserve

GameStop Corp. has revised its investment strategy to include Bitcoin as a treasury reserve asset, a move unanimously approved by its board of directors. This decision allows the company to allocate a portion of its cash reserves—or proceeds from future debt and equity issuances—into Bitcoin, though no specific investment cap has been disclosed.

By embracing cryptocurrency, GameStop joins a growing list of corporations integrating digital assets into their financial strategies. Notably, Strategy, formerly known as MicroStrategy, has rebranded to highlight its strong commitment to Bitcoin, solidifying its position as one of the largest corporate holders of the cryptocurrency.

Following the announcement, GameStop’s stock surged 8% in extended trading, reflecting investor optimism about the company’s venture into the crypto space.

Financially, the company reported a fourth-quarter net income of $131.3 million, up from $63.1 million the previous year. However, net sales declined to $1.28 billion from $1.79 billion. Meanwhile, its cash and securities holdings rose significantly, reaching $4.775 billion from $1.199 billion.

GameStop’s shift toward Bitcoin aligns with its broader strategy to adapt to an evolving digital landscape and diversify its assets amid transformations in the retail and gaming industries. In an effort to streamline operations and reduce costs, the company closed 590 U.S. stores in fiscal 2024 and plans further closures in 2025.

Overall, GameStop’s adoption of Bitcoin underscores its commitment to digital assets and its pursuit of new growth opportunities in a rapidly changing market.