GameStop (GME) to Invest in Bitcoin (BTC) After Its Board Approved a Plan to Acquire Digital Assets

GameStop Corporation (GME), the video game retailer turned memecoin stock, is reportedly moving to invest in Bitcoin after its board unanimously approved a plan to acquire digital assets.

GameStop Corporation (NYSE:GME), the video game retailer known for being a memecoin stock, is reportedly planning to invest in Bitcoin, as its board has approved a plan to acquire digital assets.

According to a March 25 CNBC report, the company will be using a portion of its corporate cash or future debt issuances to invest in Bitcoin (BTC) and US-dollar-pegged stablecoins.

The plan was further disclosed in GameStop’s fourth-quarter earnings report, which was also released on March 25. The company’s financial statements show its intent to acquire Bitcoin and stablecoins.

“[T]he Company’s investment policy permits investments in certain cryptocurrency assets, including Bitcoin and US dollar-denominated stable coins,” the statement notes.

GameStop’s cash reserves were valued at more than $4.77 billion as of February 1, compared with $921.7 million a year earlier.

The video game retailer posted $1.283 billion in net sales during the fourth quarter and $3.823 billion for fiscal 2024.

GameStop’s quarterly financial statements. Source: GameStop

See Also: Exclusive: GameStop Buying Bitcoin Would ‘Bake The Noodles’ Of TradFi, Says Swan Exec

Interested in Web3? Join Benzinga's Web3 Congress in New York City on March 21 and 22.

Last December, GameStop unveiled a new initiative to expand into Web3 with the launch of an e-commerce platform for selling NFT products.

The company also announced plans to develop a marketplace for video game developers to sell their games and in-game items directly to players.

Earlier this year, rumors began circulating that GameStop could be making a move into Bitcoin after the company disclosed in a regulatory filing that it planned to invest in a new revenue stream.

Those rumors were further ignited by an uncaptioned photo posted by GameStop CEO Ryan Cohen on February 21. The photo showed Cohen standing with Strategy (NASDAQ:STR) executive chairman and Bitcoin mega bull Michael Saylor.

Source: Ryan Cohen

The heating up of the rumors comes after GameStop showed signs of improvement.

After reporting a return to profitability in fiscal 2023, GameStop is planning to use some of its cash to invest in new opportunities.

Earlier this week, Saylor announced that Strategy had purchased an additional 6,911 Bitcoin, bringing its total Bitcoin stockpile to 506,137 BTC. This places Strategy’s Bitcoin holdings at roughly 2.4% of the total Bitcoin supply.