- GameStop supports Bitcoin purchases, joining corporations such as Strategy.
- The corporation is betting on Bitcoin despite market volatility and SEC concerns.
GameStop, the first meme-stock phenomenon and a large video game retailer, has made a significant move by adding Bitcoin to its treasury reserves. The company affirmed in a March 25 press release that its board of directors voted unanimously to do so, a strategic move toward digital assets. The retailer will invest a portion of its current cash reserves and potentially even use future debt or equity to buy Bitcoin.
This action follows a trend of greater use by public companies of Bitcoin as a reserve asset. GameStop’s move follows the largest corporate Bitcoin holder, Strategy (formerly MicroStrategy). GameStop’s move is reported to be prompted by Strategy’s Executive Chairman Michael Saylor and GameStop Chairman Ryan Cohen having been spotted together at Donald Trump’s Mar-a-Lago club in February. Around the same period, Strive Asset Management encouraged GameStop to use its considerable cash reserves to buy Bitcoin, the same strategy that has pushed MicroStrategy shares to new heights.
GameStop’s investment in Bitcoin is well-timed as the company embarks on serious restructuring. The news comes in the wake of President Donald Trump signing an executive order to create a U.S. strategic reserve of cryptocurrencies, which further establishes the legitimacy of Bitcoin as a principal financial asset. Even though GameStop did not reveal how much Bitcoin it is planning to buy or over how long it is planning to purchase it, the company confirmed that Bitcoin will be part of its long-term fiscal plan.
GameStop Incorporates Bitcoin into Treasury During Business Restructuring
Despite its aggressive switch to digital currencies, GameStop continues to grind through challenges within the retail game business. The retailer just released fourth-quarter numbers with a net income of $131.3 million, more than double last year. Its revenue fell to $1.28 billion from $1.79 billion, reflecting continued pain in the market. To reduce expenses, GameStop closed 590 stores in 2024 and has further closure plans for 2025.
The stock value of GameStop jumped more than 8% in after-hours trading to $27.50 before closing at $25.40. Bitcoin itself, having recently broken through $100,000, registered an 18% pullback and is currently at approximately $86,606.
With this action, GameStop is part of a growing number of companies incorporating Bitcoin into their business plans, solidifying the asset as a mainstream store of value. Whether this bet will prove successful for GameStop is unknown, but it is another milestone in the continuing adoption of Bitcoin at the corporate level.
Tesla also experimented with Bitcoin investment, purchasing $1.5 billion in the digital currency in 2021 and selling some afterward. Block has also maintained a Bitcoin treasury policy. These practices, however, are still controversial. Strategy just laid off 20% of its employees but still kept buying Bitcoin for reserves, citing faith in the asset’s long-term value despite short-term volatility.
GameStop’s adoption of Bitcoin is another significant corporate cryptocurrency milestone. Whether this will be a good thing or not remains uncertain, but companies are showing greater trust in Bitcoin as a corporate reserve.
