GameStop Embraces Bitcoin: Retailer Adds Crypto to Treasury Amidst Strong Q4 Earnings

26. Mar 2025 Posted by Bailey S. on News

GameStop, the video game retailer turned meme-stock legend, has officially updated its investment policy to include Bitcoin as a treasury reserve asset. The company disclosed this decision in its latest earnings report but did not specify the amount of Bitcoin it plans to hold.

Speculation about GameStop's crypto ambitions has been swirling since February when CNBC reported that the retailer was exploring alternative asset classes, including Bitcoin. The buzz intensified after GameStop CEO Ryan Cohen shared a photo with Bitcoin advocate Michael Saylor on X.

Meanwhile, Strategy, a company known for its aggressive Bitcoin accumulation, recently added 6,911 BTC to its holdings, bringing its total to over 500,000 BTC—far surpassing any other corporate entity.

GameStop acknowledged the risks associated with Bitcoin and stablecoins in its report, noting that its revised investment policy permits exposure to these assets. This move signals a significant shift for the retailer, which previously experimented with blockchain technology by launching an NFT marketplace. However, that venture was short-lived, with GameStop shutting down its NFT wallet in August 2023 and closing the marketplace entirely by February 2024, citing regulatory uncertainty.

In addition to its crypto pivot, GameStop reported a strong financial performance. The company posted a fourth-quarter net income of $131.3 million, more than doubling its $63.1 million profit from the previous year. As of February 1, it holds $4.75 billion in cash reserves.

The announcement sent GameStop’s stock surging 7% in after-hours trading to $27 per share. While a far cry from its pandemic-era highs of over $80, the company's market cap still hovers around $11.3 billion.

Interestingly, the surge in GameStop's stock also coincided with a 32% jump in the price of GME memecoin, a crypto asset unaffiliated with the retailer but often associated with its meme-fueled legacy.

With GameStop dipping into Bitcoin and strengthening its financial standing, the retailer's latest move could mark a new chapter in its evolving journey.