GameStop (GME) Shares Jump After the Video Game Retailer Confirms Plans to Add Bitcoin as a Treasury Reserve Asset

Shares of GameStop (GME) jumped over 15% in pre-market trading today after the video game retailer confirmed plans to add Bitcoin as a treasury reserve asset

Video game retailer GameStop (NYSE:GME) confirmed plans to add Bitcoin (BTC) as a treasury reserve asset, shares of the so-called meme stock rose over 15% in pre-market trades on Wednesday, according to.

GameStop (GME) stock surged 15.34% to $29.6 in pre-market trading at the time of writing. It closed Tuesday’s session at $25.4.

While GameStop shares soared about 68% over the last 12 months, the so-called meme stock is still down nearly 19% so far this year.

GameStop, the 2021 short squeeze icon, joined MicroStrategy (NASDAQ:), Tesla (NASDAQ:) and a growing list of public companies in putting Bitcoin on its balance sheet.

The company’s board of directors approved the bitcoin strategy, which was disclosed during its fourth quarter earnings report on Tuesday.

GameStop may use its existing cash or future debt and equity offerings to invest in bitcoin, and the company did not disclose the amount it plans to spend on the cryptocurrency.

The announcement came alongside better-than-expected quarterly performance, with GameStop reporting an estimated net income of around $131 million for the fourth quarter, compared to $63 million in the same period last year.

The retailer had cash on hand of about $4.6 billion at the end of the third quarter of 2024, according to its recent filing with the Securities and Exchange Commission (SEC).

GameStop’s decision to invest in bitcoin follows a February report by CNBC, which said the company was exploring investments in the world’s largest cryptocurrency and other crypto assets.

The report came just days after GameStop CEO Ryan Cohen met with bitcoin advocate Michael Saylor, MicroStrategy’s executive chairman, and Tesla CEO Elon Musk, who is known for his interest in cryptocurrency. However, Saylor was not involved in GameStop’s internal crypto discussions, sources told CNBC at the time.

Later that month, Matt Cole, CEO of Strive Asset Management, co-founded by entrepreneur Vivek Ramaswamy, penned a letter to GameStop CEO Ryan Cohen, suggesting the company use its cash reserves to invest in bitcoin.