GameStop (GME) saw a 15% surge in pre-market trading following the announcement that the company will hold Bitcoin as part of its treasury reserves. The stock climbed to $29.60 from its previous close of $25.40, according to Yahoo Finance data.
GameStop Joins Growing List of Bitcoin Holders
The decision aligns GameStop with companies like Tesla and MicroStrategy, which have embraced Bitcoin as a treasury asset. The board of directors unanimously approved the strategy, though the company has not disclosed the specific amount of BTC it plans to purchase.
GameStop’s latest financials indicate improved performance, reporting $131 million in net income for Q4 2024—more than doubling its $63 million from the previous year. The retailer also holds around $4.6 billion in cash, positioning it well for further investment.
Influences Behind the Bitcoin Move
Reports from February suggested that GameStop was exploring Crypto investments. The speculation intensified after CEO Ryan Cohen met with Bitcoin advocate Michael Saylor, though Saylor was reportedly not directly involved in the company’s decision.
In late February, Matt Cole, CEO of Strive Asset Management, urged GameStop to invest in Bitcoin, arguing that it could become “the premier Bitcoin treasury company in the gaming industry.”
A Strategic Shift for GameStop
GameStop has previously dabbled in digital assets, launching an NFT marketplace in 2022, though it scaled back the initiative due to regulatory concerns. The company also discontinued its crypto wallet service in 2023.
As digital game downloads continue to challenge its traditional retail model, GameStop’s Bitcoin investment marks a strategic pivot to strengthen its financial position. The move also aligns with a broader trend of corporations embracing Bitcoin, particularly following Donald Trump’s 2024 election win and his administration’s pro-crypto stance.