Gamestop Unleashes Bitcoin Strategy—Can $4.8B Make GME a Crypto Titan?

CN
3 days ago

Gamestop Corp. (NYSE: GME) announced on March 25 that its board of directors had “unanimously approved an update to its investment policy to add bitcoin as a treasury reserve asset.”

The company explained that a portion of its current cash balance, as well as proceeds from potential future debt or equity offerings, might be allocated toward acquiring BTC. This action represents a marked departure from the retailer’s traditional treasury management strategy, following prolonged calls from investors and digital currency proponents for the company to incorporate cryptocurrency into its financial structure. Gamestop’s new investment guidelines state:

The company’s investment policy permits investments in certain cryptocurrency assets, including bitcoin and U.S. dollar-denominated stable coins.

Financial results for the fiscal fourth quarter and full year ending Feb. 1, 2025, were issued alongside the investment update. Quarterly net sales dropped to $1.283 billion from $1.794 billion in the previous year. Nevertheless, net income improved to $131.3 million, compared with $63.1 million, attributed largely to reductions in operating expenses. On a full-year basis, net sales declined to $3.823 billion from $5.273 billion, while net income surged to $131.3 million from $6.7 million. The company also finalized its withdrawal from the Italian market and completed the shutdown of its business operations in Germany. In addition, Gamestop reported year-end cash and cash equivalents of $4.757 billion.

Several figures in the crypto industry responded to Gamestop’s new bitcoin strategy. Commenting on the company holding $4.757 billion in cash, Bitgo CEO Mike Belshe suggested on social media platform X:

Gamestop should put 90% of that into bitcoin. They should hold in time-locked transactions of 1yr, 2yr, 4yr, and 8-yr intervals and announce that they will dividend out 50% of the above water profits.

CNBC’s Mad Money host Jim Cramer also remarked: “Gamestop is finally doing my bitcoin ploy!!” In February 2021, Cramer proposed Gamestop raise funds to buy BTC and convert its 5,000 stores into crypto hubs, calling it a way to justify the stock’s value and boost its future.

Interest in bitcoin as a reserve asset is growing across both public and private sectors. U.S. President Donald Trump recently issued an executive order to create a strategic bitcoin reserve and a cryptocurrency stockpile. Several state governments are pursuing or considering similar measures. Meanwhile, companies like Strategy (Nasdaq: MSTR) continue expanding their crypto holdings, reflecting broader institutional adoption.

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