GameStop (NYSE: GME) announced on Tuesday that its board has unanimously approved the addition of bitcoin as a treasury reserve asset.
This decision aligns with the move made by Strategy, the largest corporate holder of bitcoin, which in February rebranded by dropping the word “Micro” from its name and unveiling a new logo. Strategy described this change as a “natural evolution” aimed at incorporating bitcoin into its core operations.
GameStop’s move comes shortly after U.S. President Donald Trump’s executive order earlier this month to create a strategic reserve of cryptocurrencies, utilizing tokens already held by the government.
GameStop stated that it will use a portion of its cash, future debt, or equity issuances to invest in bitcoin. However, the company did not disclose the maximum amount it plans to purchase, according to its quarterly filing.
The company also reported a surge in fourth-quarter profits, which were boosted by cost-cutting measures as it continues to struggle with a slow recovery in its core business of retailing videogame hardware and merchandise.
For the fourth quarter, GameStop’s net income more than doubled to $131.3 million, up from $63.1 million in the same period last year.
Once at the center of the “meme stock” craze, GameStop has faced challenges as consumers increasingly shift toward digital downloads, game streaming, and online shopping.
In response, GameStop has aggressively reduced costs. It closed 590 U.S. stores in fiscal 2024 and plans to shut down a “significant number” of additional locations in fiscal 2025.
The company reported fourth-quarter revenue of $1.28 billion, down from $1.79 billion a year ago.
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