GameStop Adds Bitcoin to Its Treasury Reserves

The board of directors of GameStop Corp. has unanimously approved the addition of bitcoin as a treasury reserve asset.

GameStop has added bitcoin to its treasury mix and plans to use a portion of its cash, or future debt or equity issuances, to be invested in the cryptocurrency, the company said in a statement.

GameStop shares rose 7% to $27.23 in after-hours trading on Tuesday.

The company said its board of directors has approved the addition of bitcoin as a treasury reserve asset, and it will invest up to $1 billion in bitcoin over time.

The decision comes shortly after President Trump’s executive order, signed earlier this month, to establish a strategic reserve of cryptocurrencies using tokens already owned by the government.

GameStop is the latest company to make a move into bitcoin, joining the likes of Strategy and Block in investing in the cryptocurrency.

Strategy, the largest corporate holder of bitcoin, is integrating the world’s biggest and best-known cryptocurrency into the heart of its business.

The investment firm, which is best known for its stock trades and prefers to communicate through online platforms, dropped the word “Micro” from its name and unveiled a new logo to minimize any ambiguity about its commitment to the cryptocurrency space.

The rebranding is “a natural evolution” as Strategy seeks to broaden the scope of its activities, it said.

Meanwhile, Block, the payments company founded by noting that it began investing in bitcoin in 2015, said it had bought $50 million of the cryptocurrency in the first quarter.

The company, which also owns the Square payment processing unit, said it bought 1,280 bitcoins at an average price of $39,057.

Block’s move into bitcoin comes as the cryptocurrency has been struggling in recent months, with its price falling sharply from all-time highs reached in late 2022.

Bitcoin is currently trading around the $60,000 level.

Despite the recent price declines, several companies have been making large investments in bitcoin in recent months.

In March, announced that it had bought 150 bitcoins for about $3.75 million.

The company, which is known for its online community and meme-driven stock trades, said that it bought the bitcoins at an average price of $25,000.

And in February, announced that it had bought 70 bitcoins for about $2.1 million.

The company, which is best known for its role in the "meme stock" trading frenzy of 2021, said that it bought the bitcoins at an average price of $30,000.

The recent moves by several companies to invest in bitcoin come as the cryptocurrency faces increasing scrutiny from regulators.

The U.S. Securities and Exchange Commission (SEC) is currently investigating several crypto companies, including exchange Coinbase.

The SEC is also considering new regulations for the cryptocurrency industry.

Despite the regulatory challenges, several companies are continuing to invest in and use cryptocurrencies.

For example, announced in April that it would begin accepting bitcoin, litecoin, and ether for payment at its U.S. stores.

The coffee chain said that it would start rolling out the cryptocurrency payment option in the second quarter of 2024.

And announced in March that it would begin offering cryptocurrency trading to its clients in the second half of 2024.

The moves by several companies to invest in and use cryptocurrencies highlight the growing mainstream adoption of digital assets.