GameStop Adds Bitcoin as Treasury Reserve Asset, Stock Surges 8.27% in After-Hours Trading

By Cheryl L.

GameStop Corp. (NYSE: GME), the iconic video game retailer, announced a significant update to its investment policy. In a unanimous decision, the board of directors approved the addition of Bitcoin as a treasury reserve asset, signaling the company’s ambitious entry into the rapidly evolving cryptocurrency market.

The decision has drawn attention from industry leaders, including Michael Saylor, the Chairman and founder of Strategy. “A step in the right direction,” Saylor remarked, as companies across sectors increasingly explore cryptocurrency as a financial hedge.

Ryan Cohen, GameStop’s Chairman, has been identified as a key driving force behind this Bitcoin reserve plan. On February 8, Cohen held discussions with Michael Saylor, leading to speculation about GameStop’s potential interest in adding Bitcoin to its balance sheet. A few weeks later, Cohen’s cryptic reply—“letter received”—to CoinDesk further fueled rumors. This was in response to a letter from Matt Cole, CEO of Strive Asset Management, advocating for Bitcoin’s adoption as a reserve asset to bolster the company’s financial strategy.

In its announcement, GameStop revealed that its revised investment policy now permits investments in “certain cryptocurrency assets, including Bitcoin and USD-denominated stablecoins.” The company acknowledged the associated risks, noting the potential impacts these investments could have on its financial performance and internal controls.

Headquartered in Grapevine, Texas, GameStop operates thousands of stores across the U.S. and 15 other countries, solidifying its position as a global leader in video game retail. While this Bitcoin move marks a new chapter, it is not GameStop’s first venture into the cryptocurrency space. In 2022, the company collaborated with Immutable X to launch an NFT marketplace, which generated $3.5 million in sales within its first 48 hours. However, the platform’s trading volume soon plummeted, highlighting the challenges of sustaining momentum in the competitive NFT market.

Notably, GameStop has adopted a flexible approach to its Bitcoin strategy. In its SEC filings, the company stated, “We have not set a maximum amount of Bitcoin we may accumulate, and may sell any Bitcoin we may acquire.” This flexibility allows GameStop to adapt to market conditions, ensuring that its cryptocurrency holdings remain aligned with its broader financial objectives.

The announcement appears to have resonated positively with investors. Following the news, GameStop’s stock surged 8.27% in after-hours trading, reaching $27.5 per share.