- GameStop will now hold Bitcoin and stablecoins as part of its updated corporate treasury strategy.
- The company reported holding 4.7 billion dollars in cash and may use part of it for crypto investments.
- GameStop shares rose over 6% after the announcement of its new Bitcoin investment policy.
GameStop has officially updated its investment policy to include Bitcoin and stablecoins as part of its corporate treasury. The move was approved unanimously by the board of directors and disclosed in its fourth-quarter earnings report. This shift places GameStop among a growing list of public companies diversifying into digital assets.
Policy Shift Enables Crypto Holdings
GameStop now has the approval to invest in Bitcoin and stablecoins which are pegged to the U.S. dollar under its modified investment policy. GameStop’s SEC disclosure lacks any limit specification regarding the Bitcoin acquisition scale as per the submission.
GameStop maintains complete freedom to sell its digital assets at any time needed. The modification represents a major shift in how the company handles its treasury strategy.
As of February 1, GameStop reported holding $4.7 billion in cash and cash equivalents. A year earlier, that figure stood at $921 million. While the company has not disclosed a specific amount to be directed toward Bitcoin purchases, the capital available provides flexibility for crypto acquisitions.
Market Reacts to Strategic Move
After the announcement GameStop experienced a boost in stock value during after-hours market sessions. The stock price growth of 6.3% indicated substantial investor interest in the company’s strategic direction.
CEO Ryan Cohen hinted at the development weeks before the official announcement. He posted a photo with Michael Saylor, Executive Chairman of Strategy, on social media. Strategy is well known for its aggressive Bitcoin acquisitions and serves as a model for corporate crypto strategies. The photo fueled speculation about GameStop’s future plans.
Influence From Shareholders and Industry Trends
GameStop’s decision followed external encouragement as well. In February, Strive Asset Management CEO Matt Cole sent a letter urging Cohen to consider Bitcoin. Strive is a shareholder in GameStop through its exchange-traded funds. Soon after, Cohen acknowledged receipt of the message online, increasing public attention.
GameStop now joins companies like MicroStrategy, Tesla, and Worksport in adopting a Bitcoin-focused treasury strategy. Strategy recently acquired 6,911 Bitcoin, bringing its total holdings to over 506,000. Meanwhile, Worksport added both Bitcoin and XRP to its reserves earlier this year.
Moreover, KULR Technology Group has acquired another 58.3 BTC for approximately $5 million at an average price of $88,824 per bitcoin, inclusive of fees and expenses.
For fiscal year 2024, GameStop reported $131 million in profit on $3.8 billion in revenue. This compares to $6.7 million in profit and $5.3 billion in revenue the previous year.
