GameStop revealed on Tuesday that its board has unanimously approved a plan to invest in bitcoin, marking a bold move into the world of cryptocurrencies. The company said it may use a portion of its $4.8 billion in cash, or funds from future financing, to buy bitcoin and U.S. dollar-pegged stablecoins.
Market reacts positively
Following the announcement, GameStop’s shares jumped more than 6% in extended trading, as investors welcomed the decision. The move confirmed earlier reports that the retailer was exploring crypto as part of its long-term strategy. The company hasn’t set a cap on how much bitcoin it may purchase.
Following MicroStrategy’s lead
GameStop’s bitcoin strategy is similar to that of MicroStrategy, now rebranded as Strategy, which made headlines by accumulating billions of dollars’ worth of bitcoin in recent years. While the approach boosted MicroStrategy’s stock, it also introduced significant volatility, a risk that GameStop openly acknowledges in its latest SEC filing.
Stronger financial results add momentum
Alongside the crypto news, GameStop reported a strong fourth-quarter performance, with net income of $131.3 million, more than double the $63.1 million it made a year earlier. CEO Ryan Cohen continues to push for a turnaround of the company by focusing on cost-cutting and operational efficiency, while now taking a bold step into digital assets.