GameStop is diving headfirst into the Bitcoin pool. The video game retailer’s board unanimously approved an updated investment policy that adds Bitcoin as a treasury reserve asset. No maximum limit. They can buy as much as they want. And sell whenever they feel like it. Not exactly a commitment-phobe’s nightmare.
This bold move comes after GameStop posted its third consecutive quarterly profit. Sure, revenue plummeted 28.5% year-over-year to $1.28 billion in Q4. But who cares when net income hit $131.1 million? Math is funny like that. The company now sits on a pile of $4.775 billion in cash and equivalents. That’s a lot of Bitcoins up for grabs.
Wall Street liked what it saw. Shares jumped 8.3% in after-hours trading and have rocketed nearly 90% over the past year. Wedbush analysts bumped their price target to $11.50. Stocktwits traders couldn’t type fast enough about it.
GameStop isn’t reinventing the wheel here. They’re following the playbook of Strategy (formerly MicroStrategy), which has been hoarding Bitcoin since 2020. Tesla, Coinbase, and Block have all dabbled in the crypto treasury game. It’s like the cool kids’ table, but for corporate finance. With around 19.9 million bitcoins currently in circulation, GameStop is entering a competitive market for acquiring significant holdings.
GameStop joins the corporate Bitcoin bandwagon, where cash reserves meet crypto FOMO in the boardroom’s newest status symbol.
The timing isn’t accidental. Trump’s administration is pushing a crypto-friendly agenda, even working on a strategic Bitcoin reserve. Bitcoin prices have surged 24% in the past year, hovering above $87,000. Not bad for internet money.
Meanwhile, CEO Ryan Cohen continues his slash-and-burn approach to GameStop’s brick-and-mortar empire. The company shuttered 590 U.S. stores in fiscal 2024, leaving 3,203 locations. This retail transformation echoes the company’s earlier meme stock phenomenon that dramatically reshaped its market position in 2021. More closures are coming. The company’s overall store count has dropped by nearly 970 stores compared to the previous year. Analysts grudgingly admit the operations “have some value.”
For GameStop, Bitcoin represents breathing room—a hedge that buys time for innovation while the company figures out what comes next in a digital world. From selling physical games to digital assets. The circle of retail life continues.
