GameStop Raises Its Bitcoin Reserve and Its Shares Jump Immediately After the Announcement
Shares of GameStop, whose stock ticker is (GME), rose by more than 15% in pre-market trading after the company announced plans to add Bitcoin to its balance sheet, according to Yahoo data.
The stock price reached $29.6, compared to its closing at $25.4 on Tuesday, while it is still down 19% since the beginning of the year, despite rising 68% over the past year.
GameStop joined companies like Strategy and Tesla in adopting Bitcoin as a reserve asset, with its board of directors unanimously approving its strategy.
This decision comes amid improved financial performance, as the company reported a net income of $131 million for the fourth quarter, compared to $63 million in the same period last year, with cash reserves of $4.6 billion at the end of the third quarter of 2024.
This shift is linked to a CNBC report in February, which indicated GameStop's interest in investing in Bitcoin, coinciding with a meeting of its CEO, Ryan Cohen, with Michael Saylor, the CEO of Strategy and one of the prominent advocates for the Bitcoin digital currency.
