The decision signals GameStop’s strategic push into digital assets amid ongoing challenges in its core retail business
GameStop (NYSE:GME) has officially joined the growing list of corporations investing in Bitcoin, announcing its board’s unanimous decision to adopt the cryptocurrency as a treasury reserve asset.
The company posted the “announcement regarding Bitcoin” on X, linking to the SEC’s Form 10-K filed on Tuesday, which detailed the change in strategy.
GameStop stated that a portion of its cash reserves, as well as future debt and equity issuances, may be allocated to Bitcoin. However, the company has not set a limit on potential purchases.
GameStop turns to Bitcoin as ‘Plan B,’ but admits it “may prove unsuccessful”
Despite posting a fourth-quarter net income of $131.3 million, more than double the figure posted from the same period last year, the company continues to face challenges in its traditional retail business.
GameStop’s quarterly revenue declined to $1.28 billion, down from $1.79 billion a year earlier, reflecting the broader industry shift toward digital game downloads and e-commerce.
Under Chairman Ryan Cohen’s leadership, GameStop has aggressively cut costs, closing 590 stores in 2024, with additional closures expected in 2025.
The company hopes that Bitcoin will serve as a strategic hedge against inflation and declining cashflow, but acknowledged in its SEC filing the risks associated with cryptocurrency.
“Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful,” the firm said.
GameStop’s Bitcoin adoption places it among a growing number of publicly traded companies integrating digital assets into their financial strategies.
The move comes shortly after President Donald Trump signed an executive order to establish a strategic Bitcoin reserve, using tokens already owned by the U.S. government.
With the Trump administration’s pro-crypto stance, companies like Strategy, Robinhood, and Coinbase have strengthened their Bitcoin holdings, signaling a broader shift in corporate treasury strategies.
GameStop’s decision follows this trend but comes at a time when Bitcoin remains highly volatile, recently hitting a record $100,000 before pulling back to $88,000, an 18% decline.
Despite the risks, the announcement has fueled excitement among retail traders, with GameStop shares jumping more than 6% in after-hours trading.
While some see the move as a strategic hedge against inflation and declining cash flow, others question whether a struggling retailer can sustain exposure to an asset as unpredictable as Bitcoin.
The long-term impact will depend on how GameStop manages its holdings and whether Bitcoin can be effectively integrated into its broader financial strategy.
