GameStop (GME), the gaming retailer known for its rollercoaster stock history, is making headlines again – this time for adding Bitcoin to its treasury. This move aligns the company with a growing number of publicly traded firms adding Bitcoin to their reserves.
Was it a well-thought-out move? Let’s dive in.
Alongside its fourth-quarter earnings report, GameStop announced that its board had unanimously decided to hold Bitcoin as a treasury reserve asset. This means the company can now keep digital assets on its balance sheet, marking a shift in how it manages its finances.
Speculation about this move started in February when CEO Ryan Cohen posted a photo of himself with Michael Saylor, Executive Chairman of MicroStrategy (MSTR), at Donald Trump’s Mar-a-Lago. The post sparked curiosity about GameStop’s future in the crypto space.
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By the end of 2024, GameStop held $5.355 billion in current assets but did not reveal how much of this would go toward Bitcoin. The announcement led to a 5.9% jump in GME shares during after-hours trading.
Matt Cole, CEO of Strive Asset Management—an investment firm co-founded by Vivek Ramaswamy—had previously urged GameStop to adopt Bitcoin. In a letter sent to Ryan Cohen on February 24, Cole argued that with nearly $5 billion in cash reserves, GameStop had a rare opportunity to position itself as a leader in the market.
Strive Asset Management owns GameStop shares through its exchange-traded funds (ETFs), but Cole did not disclose the exact amount.
“We believe GameStop has an incredible opportunity to transform its financial future by becoming the premier bitcoin treasury company in the gaming sector,” Cole wrote.
Cohen later acknowledged the letter with a simple tweet: “Letter received.”
GameStop’s move is similar to those of companies like Strategy, Semler Scientific, and MARA Holdings, which have already added Bitcoin to their treasuries. Reports suggest GameStop has been exploring investments in alternative assets, including cryptocurrencies.
Cole also praised GameStop for making financial improvements, such as closing unprofitable stores and rejecting diversity, equity, and inclusion (DEI) programs.
Bitcoin has risen slightly on the news, now trading at $88,500, up about 0.2% from 24 hours ago.
GameStop sure knows how to keep things interesting!
GameStop has not disclosed the exact amount of Bitcoin purchased but confirmed adding it to its treasury reserves.
Yes, GameStop is still in business, focusing on e-commerce, collectibles, and new financial strategies like holding Bitcoin.
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