GameStop Adds Bitcoin to Its Treasury Reserves, Embracing the Meme-Stock Phenomenon

The company affirmed in a March 25 press release that its board of directors voted unanimously to do so, a strategic move toward digital assets.

GameStop, the first meme-stock phenomenon and a large video game retailer, has announced that it will be adding Bitcoin to its treasury reserves. The company's board of directors voted unanimously to invest in the flagship cryptocurrency, according to a March 25 statement.

The retailer will invest a portion of its current cash reserves and may even use future debt or equity to buy more of the cryptocurrency. This move follows a trend of greater use by public companies of Bitcoin as a reserve asset.

The company's move comes after the largest corporate Bitcoin holder, Strategy (formerly MicroStrategy), has been making headlines for months with its massive purchases of the cryptocurrency.

According to reports, Saylor and GameStop Chairman Ryan Cohen were seen together at Donald Trump's Mar-a-Lago club in February. Around the same period, hedge fund Strive Asset Management penned a letter to GameStop urging it to put its substantial cash reserves into buying Bitcoin, similar to the strategy that has seen Strategy's shares soar to new highs.

This move by GameStop comes at a time when the company is undergoing serious restructuring.

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This action also follows President Donald Trump signing an executive order to create a U.S. strategic reserve of cryptocurrencies, further legitimizing Bitcoin as a primary financial asset.

Although GameStop did not disclose how much Bitcoin it plans to buy or over what time period, the company stated that the cryptocurrency will be part of its long-term fiscal plan.

GameStop Incorporates Bitcoin During Business Revamp

Despite its bold switch to digital currencies, GameStop continues to face challenges within the retail game business. The retailer recently reported fourth-quarter numbers with a net income of $131.3 million, more than double last year's figure. Its revenue fell to $1.28 billion from $1.79 billion, highlighting ongoing difficulties in the market.

To reduce expenses, GameStop closed 590 stores in 2024 and has announced further closure plans for 2025.

The stock value of GameStop rose by over 8% in after-hours trading, reaching $27.50 before closing at $25.40. Bitcoin itself, having recently surpassed the $100,000 mark, saw an 18% setback and is currently trading around $86,606.

With this move, GameStop joins a growing number of companies that are incorporating Bitcoin into their business plans, solidifying the asset as a mainstream store of value.

While it remains to be seen whether this bet will pay off for GameStop, it marks another milestone in the ongoing adoption of Bitcoin at the corporate level.

Companies Experimenting with Bitcoin

Tesla had previously experimented with investing in Bitcoin, purchasing $1.5 billion in the digital currency in 2021 and later selling some of it. Block has also maintained a Bitcoin treasury policy. However, these practices have faced criticism.

Strategy recently laid off 20% of its employees but continues to buy more Bitcoin for its reserves, showcasing its strong belief in the asset's long-term value despite short-term price volatility.

GameStop's adoption of Bitcoin marks another significant milestone in the integration of cryptocurrencies into the mainstream corporate landscape.

Only time will tell whether this move will be a good thing for the company and its shareholders. However, it certainly signals an increasing level of trust from companies in Bitcoin as a corporate reserve asset.

This development comes amidst a broader narrative of institutions and governments showing growing interest in cryptocurrencies.