GameStop Adds Bitcoin (BTC) to Its Balance Sheet, Becoming the Latest Public Company to Adopt the Cryptocurrency

GameStop has become the latest public company to add Bitcoin to its balance sheet, confirming long-rumored plans during its fourth quarter earnings release.

GameStop (NYSE:GME) shares rose in after-hours trading on Thursday after the company announced plans to add Bitcoin (BTC/USD) to its balance sheet, as rumored earlier this year.

The company’s board of directors approved the decision to adopt Bitcoin as a treasury reserve asset, according to its quarterly filing.

GameStop may utilize existing cash or capital raised through future debt or equity offerings to invest in Bitcoin, varying the investment amounts and timing at the discretion of management. Despite rumors of a $250 million Bitcoin investment, the company did not disclose specific purchase amounts or allocation limits.

The move, which comes after several other U.S. public companies have announced similar plans, confirms a February report by The Block about the company’s plans to add Bitcoin and potentially other crypto assets to its reserves.

The video game retailer also reported improved quarterly performance, reporting net income of $131.3 million for the fourth quarter, compared to $63.1 million in the same period last year.

GameStop posted a fourth-quarter adjusted loss of 38 cents per share, narrower than analysts’ expectations for a 57-cent loss. Revenue came in at $2.23 billion, above estimates of $2.12 billion.

In the fourth quarter, gross profit increased by 17% year-over-year to $994.4 million, driven by a 24.4% rise in other categories, partially offset by a 6.3% decline in video game hardware sales.

During the quarter, operating expenses increased by 30.4% to $903 million, primarily due to a $200 million increase in selling, general and administrative expenses.

As of December 31, 2023, GameStop had cash and cash equivalents of $1.46 billion, compared to $1.03 billion at the end of the third quarter. Total assets stood at $4.46 billion, and total liabilities were $2.17 billion.

GameStop shares rose 6.3% in after-hours trading after closing Thursday’s session at $87.96. Bitcoin traded flat on the news, hovering just below $88,000.