The video game giant GameStop has added Bitcoin to its investable assets following a meeting with Michael Saylor.
GameStop has officially announced the addition of Bitcoin as a reserve asset for its treasury, a move that sent the company’s stock up 6.3% in after-hours trading. The announcement came alongside the company’s fourth-quarter financial results, which exceeded expectations.
On March 25, the company’s board of directors unanimously approved an update to its investment policy to include Bitcoin as a treasury reserve asset. This decision follows a meeting between GameStop CEO Ryan Cohen and Michael Saylor, chairman of Strategy (formerly MicroStrategy), the largest corporate holder of Bitcoin.
The company stated that it may use part of its existing cash or resort to future debt or equity issuances to invest in Bitcoin, though it did not specify the maximum amount it intends to purchase. Currently, GameStop holds $4.775 billion in cash, cash equivalents, and marketable securities.
New corporate treasury strategy
GameStop’s inclusion of Bitcoin as a treasury reserve comes shortly after President Donald Trump’s executive order in early March to establish a strategic Bitcoin reserve using assets already held by the government through seizures.
In its announcement, GameStop stated:
“Our investment policy now allows investments in certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stablecoins.”
The company also acknowledged the associated risks, including the potential impact of these investments on financial results and internal financial controls.
“We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire,” the company said in its SEC filing.
The decision to add Bitcoin to its treasury reserves could represent a strategic pivot for the company.
GameStop’s performance
GameStop’s fourth-quarter net income more than doubled to $131.3 million, compared to $63.1 million in the same period last year. The increase was driven by the company’s cost-cutting efforts as it continues to struggle with a slow recovery in its core business of retail hardware and video game merchandise sales.
However, the company reported a decline in fourth-quarter revenue to $1.28 billion, down from $1.79 billion the previous year. GameStop closed 590 stores in the U.S. during the 2024 fiscal year and expects to close a “significant number” of additional stores in the 2025 fiscal year.
The company also completed the wind-down of operations in Germany and finalized the divestiture of its business in Italy.
