GameStop Adds Bitcoin to Its Treasury Reserve Assets

GameStop said on Tuesday that its board has unanimously approved the addition of bitcoin as a treasury reserve asset.

GameStop Inc (NYSE:GME) has obtained approval from the board of directors to include bitcoin as a treasury reserve asset, the company disclosed in a statement on Tuesday.

The decision, approved unanimously by the board, reflects a broader trend among corporations to embrace bitcoin as part of their financial strategies. Earlier this year, in February, disclosed that it had sold units of bitcoin from its treasury holdings at an average price of $60,177.

At the time, the company, previously known as MicroStrategy, also announced that it was dropping "Micro" from its name and unveiling a new logo to highlight its focus on bitcoin. The rebranding, described by CEO and founder, was "a natural evolution" as it integrates bitcoin — the world's biggest and best-known cryptocurrency — into the heart of its business operations.

Moreover, earlier this month, U.S. President Donald Trump signed an executive order to establish a strategic reserve of cryptocurrencies using tokens already owned by the government.

According to its latest quarterly filing, GameStop plans to allocate a portion of its cash or future debt or equity issuances to investing in bitcoin. However, the company did not disclose the maximum amount of bitcoin it might purchase.

The company also reported an increase in fourth-quarter profit, attributing it to efforts to reduce costs as it continues to adjust to a slow turnaround in its primary business of retailing videogame hardware and merchandise.

GameStop's fourth-quarter net income more than doubled to $131.3 million, compared to the same period last year, when it posted $63.1 million. The company's earnings per share also showed improvement, reaching $0.90, compared to $0.50 in the fourth quarter of 2023.

The company, which was at the center of the "meme stock" trading frenzy last year, has been struggling with its main business due to an exodus towards digital downloads, game streaming, and e-commerce shopping. However, it has taken steps to cut costs.

It closed 590 stores in the U.S. during fiscal 2024 and anticipates closing a "significant number" of additional stores in fiscal 2025.

GameStop reported fourth-quarter revenue of $1.28 billion, compared to $1.79 billion a year earlier. The analysts polled by FactSet had expected revenue of $1.04 billion.