GameStop Adds Bitcoin to Corporate Treasury Amid Renewed Focus on Alternative Assets
GameStop, the video game retailer that became a symbol of the meme stock era, announced Tuesday that it is adding Bitcoin to its corporate treasury reserves, marking a new chapter in its evolving investment strategy. The move aligns GameStop with other high-profile companies embracing digital assets as part of their financial operations.
The company did not disclose how much Bitcoin it plans to hold, but confirmed in its Q4 earnings report that it has updated its investment policy to allow for the purchase of Bitcoin and U.S. dollar-pegged stablecoins. The revised policy notes the firm’s exposure to potential risks tied to the price volatility and regulatory uncertainty surrounding these digital assets.
A Strategic Shift Toward Crypto
Speculation around GameStop’s crypto involvement had been circulating since February, when CNBC reported the company was exploring investments in alternative assets. This came shortly after GameStop CEO Ryan Cohen shared a photo on X featuring Michael Saylor, chairman of Strategy (formerly MicroStrategy), who earlier this week revealed a massive purchase of 6,911 BTC — pushing Strategy’s total holdings past 500,000 BTC, the largest by any corporate entity.
GameStop’s foray into crypto is not entirely new. The company experimented with NFTs, launching its own wallet and marketplace during the crypto boom. However, by early 2024, it shut down both services, citing regulatory uncertainty in the digital collectibles space.
A Turnaround in Earnings and Sentiment
In addition to the Bitcoin announcement, GameStop posted fourth-quarter net income of $131.3 million, more than double the $63.1 million earned in the same period last year. The retailer now holds $4.75 billion in cash as of February 1.
Shares of GameStop jumped around 7% in after-hours trading, climbing to $27 per share, though still far from the highs above $80 seen during the 2021 meme stock mania. The company's market capitalization currently sits at approximately $11.3 billion.
While GameStop’s past ventures into digital assets have met mixed results, the decision to adopt Bitcoin as a reserve asset signals a broader trend among public companies seeking diversification and long-term value preservation amid a shifting macroeconomic landscape.