GameStop (GME.N) announced on Tuesday that its board has unanimously approved the addition of bitcoin as a treasury reserve asset.
The move reflects a similar strategy employed by MicroStrategy (MSTR.O), the largest corporate holder of bitcoin. In February, MicroStrategy adapted its name and branding, emphasizing its commitment to the cryptocurrency space. MicroStrategy stated the rebranding was “a natural evolution” as it integrates bitcoin into its business operations.
This decision follows an executive order signed earlier in the month in the United States, establishing a strategic reserve of cryptocurrencies. GameStop plans to invest a portion of its cash or future debt or equity issuances in bitcoin, but it did not specify the maximum amount. This was detailed in the company’s quarterly filing.
GameStop also reported a rise in fourth-quarter profit due to its cost-reduction efforts as it works through a slow turnaround in its core business of selling videogame hardware and merchandise. The company’s fourth-quarter net income exceeded $131.3 million, more than doubling the $63.1 million reported during the same period last year.
Once at the center of the “meme stock” trading frenzy, the company has faced challenges in its primary operations due to shifts toward digital downloads, game streaming, and e-commerce shopping. However, GameStop has been aggressively cutting costs. During fiscal year 2024, 590 stores were closed in the United States. Further closures are anticipated for fiscal year 2025.
Revenue for the fourth quarter was reported at $1.28 billion, a decrease from the $1.79 billion reported a year earlier.
