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The decision signals GameStop’s strategic push into digital assets amid ongoing challenges in its core retail business

GameStop (NYSE:GME) has officially joined the growing list of corporations investing in Bitcoin, announcing its board’s unanimous decision to adopt the cryptocurrency as a treasury reserve asset.

The company posted the “announcement regarding Bitcoin”on X, linking to the SEC’s Form 10-K filed on Tuesday, which detailed the change in strategy.

An announcement regarding Bitcoin pic.twitter.com/gG8JRarIok

— GameStop (@gamestop) March 25, 2025

GameStop stated that a portion of its cash reserves, as well as future debt and equity issuances, may be allocated to Bitcoin. However, the company has not set a limit on potential purchases.

GameStop turns to Bitcoin as ‘Plan B,’ but admits it “may prove unsuccessful”

Despite posting a fourth-quarter net income of $131.3 million, more than double the figure posted from the same period last year, the company continues to face challenges in its traditional retail business.

GameStop’s quarterly revenue declined to $1.28 billion, down from $1.79 billion a year earlier, reflecting the broader industry shift toward digital game downloads and e-commerce.

Under Chairman Ryan Cohen’s leadership, GameStop has aggressively cut costs, closing 590 stores in 2024, with additional closures expected in 2025.

The company hopes that Bitcoin will serve as a strategic hedge against inflation and declining cashflow, but acknowledged in its SEC filing the risks associated with cryptocurrency.

“Bitcoin, for example, is a highly volatile asset and has experienced significant price fluctuations over time. Our Bitcoin strategy has not been tested and may prove unsuccessful,” the firm said. 

GME shares rise 6% but uncertainty remains

GameStop’s Bitcoin adoption places it among a growing number of publicly traded companies integrating digital assets into their financial strategies.

The move comes shortly after President Donald Trump signed an executive order to establish a strategic Bitcoin reserve, using tokens already owned by the U.S. government.

With the Trump administration’s pro-crypto stance, companies like Strategy, Robinhood, and Coinbase have strengthened their Bitcoin holdings, signaling a broader shift in corporate treasury strategies.

GameStop’s decision follows this trend but comes at a time when Bitcoin remains highly volatile, recently hitting a record $100,000 before pulling back to $88,000, an 18% decline.

Despite the risks, the announcement has fueled excitement among retail traders, with GameStop shares jumping more than 6% in after-hours trading.

While some see the move as a strategic hedge against inflation and declining cash flow, others question whether a struggling retailer can sustain exposure to an asset as unpredictable as Bitcoin.

The long-term impact will depend on how GameStop manages its holdings and whether Bitcoin can be effectively integrated into its broader financial strategy.

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